Mercury Corporation issued 3,500 shares of no-par common stock for $25 per share. Mercury also issued 2,800 shares of $50 par, 6 percent noncumulative preferred stock at $60 per share. Required:
a. Record these events in a horizontal statements model.
b. Prepare journal entries to record these transactions.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

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