A company issues 1,000 shares of $10 par, 2% preferred stock for $25 per share and makes this entry: Cr Dr 25,000 Cash Preferred Stock 25,000 This is the correct answer The correct answer is debit Cash 10,000, credit Preferred Stock 10,000 (the amount of the par value) The correct answer is debit Cash 25,000, credit Preferred Stock 10,000 ($10 x 1,000), credit Paid in Capital in Excess of Par 15,000 (1,000 x excess over par value) The correct answer is debit Cash 10,200 (par value plus 2%), credit Preferred Stock 10,000, credit Paid in Capital in Excess of Par 200 (10,000 x 2%)