1. Please use the following information for questions 24, 25, and 26:

   On February 1, 2021 DDD Company was authorized to issue and 20,000 shares of 6%, $50 par value Preferred Stock. On February 15th, the company issued 3,000 for $80. What would be the entry to record the shares authorized?

   		Debit Preferred Stock $1,000,000, Credit Cash $1,000,000
   		Debit Cash $390,000, Credit Preferred Stock $150,000, Credit Paid in Capital in Excess of Par $240,000
   		Debit Cash $240,000, Credit Preferred Stock $150,000, Credit Paid in Capital in Excess of Par $90,000
   		No entry required

3 points

QUESTION 25

1. What would be the entry to record the shares issued?

   		Debit Preferred Stock $1,000,000, Credit Cash $1,000,000
   		Debit Cash $390,000, Credit Preferred Stock $150,000, Credit Paid in Capital in Excess of Par $240,000
   		Debit Cash $240,000, Credit Preferred Stock $150,000, Credit Paid in Capital in Excess of Par $90,000
   		No entry required

3 points

QUESTION 26

1. What would be the effect on Common Stock when the stock is issued?

   		increased by $1,000,000.
   		decreased by $240,000.
   		increased by $390,000.
   		be unaffected by the event.