The Following Information Was Taken from the Statement of Shareholders

question 21

Multiple Choice

The following information was taken from the statement of shareholders' equity of Carnival Industries:
$\begin{array}{|l|r|r|}\hline & 2017 &2 0 1 6\\\hline \text { Preferred stock (no par) } & \$ 900 & \$ 400 \\\hline \text { Common stock ( } \$ 1 \text { par value) } & 1,000 & 900 \\\hline \text { Additional paid-in capital: } & & \\\hline \text { Common stock } & 40 & 20 \\\hline \text { Treasury stock } & 10 & -- \\\hline \text { Less: Treasury stock } & 130 & 150 \\\hline\end{array}$

The journal entry to record the issuance of preferred stock during 2017 would include:

• A)a debit to Preferred Stock for $900.
• B)a credit to Preferred Stock for $500.
• C)a credit to Additional Paid in Capital for $500.
• D)a credit to Cash for $500.

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Definitions:

Current Distribution Plan

The existing strategy for allocating resources, goods, or services among various recipients or locations.

Individual Performance

Individual performance refers to the level at which an employee accomplishes their assigned duties and tasks, often evaluated in the context of their role within an organization.

Pay Plans

Systems or structures used by organizations to compensate employees, including wages, salaries, bonuses, and incentives.

Stock Plan Types

Various programs offered by companies to employees, allowing them to purchase company shares at favorable terms, such as Employee Stock Ownership Plans (ESOPs) or Stock Option Plans.