Cooke Corporation Issues 10,000 Shares of $50 Par Value Preferred

question 73

Multiple Choice

Cooke Corporation issues 10,000 shares of $50 par value preferred stock for cash at $80 per share. The entry to record the transaction will consist of a debit to Cash for $800,000 and a credit or credits to

• A) Preferred Stock for $800,000.
• B) Preferred Stock for $500,000 and Paid-in Capital in Excess of Par-Preferred Stock for $300,000.
• C) Preferred Stock for $300,000 and Paid-in Capital from Preferred Stock for $500,000.
• D) Paid-in Capital from Preferred Stock for $800,000.

---

Definitions:

Connective

This tissue type supports, connects, or separates different types of tissues and organs in the body.

Exchange of Gases

The process by which oxygen is taken into the body and carbon dioxide is expelled, occurring primarily in the lungs.

Transitional Epithelium

A type of epithelium characterized by its ability to stretch and change shape, found in the urinary tract.

Simple Squamous Epithelium

A single layer of flat cells lining surfaces involved in diffusion and filtration, such as blood vessels and lungs.