Use the Following Information for Questions

question 21

Multiple Choice

Use the following information for questions
Air Ace Corporation issues 5,000 preferred shares for $40 per share.
-The entry to record the transaction will consist of a debit to Cash for $200,000 and a credit or credits to

• A)Preferred Shares for $200,000.
• B)Preferred Shares for $150,000 and Share Capital for $50,000.
• C)Preferred Shares for $150,000 and Retained Earnings for $50,000.
• D)Investment in Preferred Shares for $200,000.

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Definitions:

Carpals

The eight small bones that make up the wrist, connecting the hand to the forearm.

Phalanges

The bones of the fingers and toes in humans and other vertebrates.

Proximal End

The part of a limb or structure that is closest to the center of the body.

Radius

The radius is one of the two large bones of the forearm, located on the thumb side when the palm is facing up.