A Corporation Received a Subscription for 200 Shares of 10

question 68

Multiple Choice

A corporation received a subscription for 200 shares of 10 percent, $100 par-value preferred stock at $103 a share. The entry to record this transaction consists of a debit to Subscriptions Receivable
-Preferred for $20,600 and a credit to:

• A)Preferred Stock for $20,000 and a credit to Retained Earnings for $600.
• B)Preferred Stock Subscribed for $20,000 and a credit to Gain on Sale of Preferred Stock for
• $600.
• C)Preferred Stock Subscribed for $20,000 and a credit to Paid-in Capital in Excess of Par Value
• -Preferred Stock for $600.
• D)Preferred Stock Subscribed for $20,600.

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Definitions:

Water Supplies

The availability of water resources to meet the consumption needs of individuals, communities, and ecosystems.

National Parks

Designated natural areas protected for public enjoyment and preservation of wildlife, usually operated by national governments.

Land Mass

A large contiguous area of land on the Earth's surface, distinguished from smaller landforms and bodies of water.

National Park System

A collection of protected areas managed by a nation to conserve natural beauty, wildlife, and historical sites.