Textbook Problem

Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package. Each package includes 10 shares of $1 par value common stock and 2 shares of $50 par value preferred stock. The separate market value of the common stock was $8 at the time of the sale and Morgan credits the Common Stock account for $5,000 and the Additional Paid-in Capital on Common Stock account for $29,615.38. What was the separate market value of the preferred stock on the date of the sale, and what journal entry would Morgan make to record this transaction?