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.

---

Definitions:

Decision Making

The process of making choices or solving problems by evaluating information, considering alternatives, and selecting a course of action.

Employees Choose

The process or policy allowing employees to make choices regarding certain aspects of their job or employment conditions, such as flexible working hours or benefits.

Empower Others

The act of giving power or authority to others, enabling them to make decisions, act independently, and develop self-efficacy.

Independent Decisions

Choices made by an individual or an entity without outside influence or pressure, relying solely on one's judgment and resources.