Below Are Two Transactions for Navaho Co

Essay

Below are two transactions for Navaho Co.

1. On June 1, Navaho Co. issued 2,000 shares of $5 par common stock for $16 per share.

2. On June 15, Navaho Co. issued 1,200 shares of $5 par preferred stock to acquire a building. The stock is not widely traded, and the current market value of the stock is not evident. The building has recently been appraised by an independent firm as having a market value of $15,000.

Required
For each of these transactions, determine the impact on the accounting equation of the journal entry that Navaho Co. would make.