True?...

Fronthouse Corp. issues 16,000 shares of no-par value preferred stock for cash at exist63.00 per share. The journal entry to record the transaction will consist of a debit to Cash for exist1,008,000 and a credit (or credits) to: Retained Earnings for exist1,008,000. Preferred Stock for exist848,000 and Additional Paid-In Capital for exist208,000. Preferred Stock for exist1,008,000. Preferred Stock for exist848,000 and Retained Earnings for exist208,000