Question
A company sold 100,000 shares of its own $10 par value preferred stock for $2,060,000. The entry to record the sale would include a Select
A company sold 100,000 shares of its own $10 par value preferred stock for $2,060,000. The entry to record the sale would include a
Select one:
a. A credit to Preferred Stock, Par Value, of $2,060,000. Cash would be debited $2,060,000.
b. A debit to Preferred Stock, Par Value, of $1,000,000 and a debit to Preferred Stock, Additional Paid in Capital, of $1,060,000. Cash would be credited $2,060,000.
c.A credit to Preferred Stock, Par Value, of $1,000,000 and a credit to Preferred Stock, Additional Paid in Capital, of $1,060,000. Cash would be debited $2,060,000.
d. A credit to Preferred Stock, Par Value, of $1,000,000 and a credit to Treasury Stock of $1,060,000. Cash would be debited $2,060,000.
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
14th Edition
978-0132960649, 132960648, 132109174, 978-0132109178
