Taylor Corporation issues 20,000 shares of $50 par value preferred stock for cash at $90 per share.

Question:

Taylor issues 20,000 shares of $50 preferred stock for cash at $90 per share. The entry to record the transaction will consist of a debit to Cash for $1,800,000 and a credit or credits to Preferred Stock for $1,000,000, and Paid-in Capital in Excess of Par?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...