Gonzo Corp. was established on October 1, 2008, and is listed on the New York Stock Exchange. The company has both common ($1 par value; 200,000 authorized shares) and preferred ($5 par value; 30,000 authorized shares) stock. At October 1, 2010, Gonzo's had 25,000 issued and outstanding common shares, but had never issued any preferred stock. The following transactions occurred during October 2010:
October 2 Sold 2,000 shares of common stock for $17 per share.
October 7 Issued 1,000 shares of preferred stock for a truck. The truck's fair market value at the time of the exchange was $20,000.
October 16 Sold 5,000 shares of preferred stock for $27 per share.
October 19 Purchased 600 shares of Gonzo common stock in the market for $18 per share
October 24 Issued 200 shares of common stock for equipment. The last trade of Gonzo's common stock was on October 21 at $19.50 per share.
Required:
a. Prepare journal entries for these transactions.
b. How many shares of common stock were authorized, issued, and outstanding at October 31, 2010?
c. How many shares of preferred stock were authorized, issued, and outstanding at October 31, 2010?

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The Answer of Gonzo Corp. was established on October 1, 2008, and is listed on the New York Stock Exchange. The company has both common ($1 par value; 200,000 authorized shares) and preferred ($5 par value; 30,000 authorized shares) stock. At October 1, 2010, Gonzo's had 25,000 issued and outstanding common shares, but had never issued any preferred stock. The following transactions occurred during October 2010:
October 2 Sold 2,000 shares of common stock for $17 per share.
October 7 Issued 1,000 shares of preferred stock for a truck. The truck's fair market value at the time of the exchange was $20,000.
October 16 Sold 5,000 shares of preferred stock for $27 per share.
October 19 Purchased 600 shares of Gonzo common stock in the market for $18 per share
October 24 Issued 200 shares of common stock for equipment. The last trade of Gonzo's common stock was on October 21 at $19.50 per share.
Required:
a. Prepare journal entries for these transactions.
b. How many shares of common stock were authorized, issued, and outstanding at October 31, 2010?
c. How many shares of preferred stock were authorized, issued, and outstanding at October 31, 2010?