On January 1, 2014, Gato Company issued 1,000 shares of $ 80 par callable pre-ferred shares for $ 200,000. Callablepreferredshares for $200,000. Gato can call these preferred shares on January 1, 2016, for $ 200 per share. On June 1, 2016, Gato calls the shares.
Required
a. What is the journal entry to record the issuance of the preferred shares?
b. What is the journal entry when Gato calls the preferred shares?