Prepare journal entries to record the following four separate issuances of stock.
1. a corporation issued 4,000 shares of $5 par value common stock for $35,000 cash.
2. a corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts. estimated to be worth $40,000. the stock has a $1 per share stated value.
3. a corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. the stock has no stated value.
4. a corporation issued 1,000 shares of $50 par value preferred stock for $60,000 cash.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.