Guastella Insurance issued 100,000 shares of common stock (par value $10 / share) for $80 a share on November 12, 2018. There were 1,000,000 shares authorized.

On July 2, 2019, Guastella issued 8%, 100,000 shares of preferred stock (par value $5 / share) for $40 a share.

On August 18, 2020, Guastella acquired 20,000 treasury stock shares for $50 a share.

21. The entry to record the issuance of common stock in 2018 would require a:

A. Debit to Cash, $8.000,000. B. Credit to Common Stock, $8,000,000. C. Debit to Cash, $1,000,000.

D. Credit to Paid-in capital in excess of par-common, $700,000.

22. The entry to record the issuance of the preferred stock in 2019 would require a:

A. Debit to Cash, $400,000. B. Credit to Paid-in capital in excess of par-preferred, $350,000. C. Credit to Preferred Stock, $500,000.

D. Debit to Cash, $3,500,000.

23. The entry to record the purchase of treasury stock would require a:

A. Credit to Treasury Stock, $200,000. B. Debit to Cash, $200,000. C. Credit to Paid-in capital, treasury stock, $20,000.

D. Debit to Cash, $1,000,000.

24. After the treasury stock was purchased, how many shares of common stock would be outstanding? A. 980,000 shares. B. 100,000 shares.

C. 20,000 shares.

D. 80,000 shares.