Utah executed the following summary transactions during 2022: 1. Although issuing common stock often increases cash flows, it doesn't always.The difference between common and preferred stock impacts how you make money. Issuing common stock is how a corporation can generate capital, generate money, for use in the company. The new stock issued is not taxable, nor does the cost basis change, but the per-share basis does. Solution for UTAH INC. In a stock acquisition accounted for under the acquisition method. Companies issue dividends to common stockholders before preferred stockholders. A company issues common stock to raise money, so the debit will always be to cash.