On February 1, 2020 CELTIC Company issued 4,000 shares of $40 par value Ordinary Shares and 2,000 shares of $50 par value Preference Shares. The market price of one Ordinary Shares is $150. The market price of one Preference Share is $200. CELTIC Company received a lump sum of $900,000 for the entire share issue.

CELTIC Company record the above trasaction in a single (i.e., combined) journal entry.

What is the correct journal entry with respect to CASH?

Select one:

a. CREDIT $1,000,000

b. CREDIT $900,000

c. DEBIT $1,000,000

d. DEBIT $900,000

e. None of these answers

What is the correct journal entry with respect to SHARE CAPITAL - ORDINARY?

Select one:

a. DEBIT $160,000

b. CREDIT $160,000

c. DEBIT $200,000

d. CREDIT $200,000

e. None of these answers

What is the correct entry with respect to SHARE PREMIUM - ORDINARY?

Select one:

a. DEBIT $380,000

b. None of these answers

c. CREDIT $440,000

d. CREDIT $380,000

e. DEBIT $440,000

What is the correct journal entry with respect to SHARE CAPITAL - PREFERENCE?

Select one:

a. DEBIT $120,000

b. DEBIT $100,000

c. None of these answers

d. CREDIT $120,000

e. CREDIT $100,000

What is the correct journal entry with respect to SHARE PREMIUM - PREFERENCE?

Select one:

a. CREDIT $260,000

b. None of these answers

c. DEBIT $230,000

d. CREDIT $230,000

e. DEBIT $260,000