Please use the following information for questions 1-2Smith Corporation has two

Please use the following information for questions 1-2Smith Corporation has two class of stock authorized: common stock and preferred stock. The common stock has a par value of $10 and the preferred stock has a par value of $5.1) Smith issued 1000 shares of the common stock for $20 per share. The necessary journal entry is:A. Cash $20000Common Stock $20000B. Common Stock $20000Cash $20000C. Cash $20000Common Stock $10000PICIEOPV Common Stock $10000D. Common Stock $10000PICIEOPV Common Stock $10000Cash $200002) Smith received land valued at $30000 in exchange for 5000 shares of preferred stock. The necessary journal entry is:A. Land $30000Preferred Stock $25000PICIEOPV $5000B. Land $30000Common Stock $25000PICIEOPV $5000C. Land $30000Cash $30000D. None of the above3) Under the law corporations are separate legal entities.A. TrueB. False4) When a corporation purchases shares of its own stock it is called:A. IllegalB. FraudC. Treasury StockD. Common Stock