Cashman Nursery, with an authorization of 25,000 shares of preferred stock and 300,000 shares of common stock, completed several transactions involving its stock on July 30, the first day of operations. The trial balance at the close of the day follows:
All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings. Journalize the two entries to record the transactions summarized in the trial balance.