The Nice Corporation Issues 8,000 Shares of $100 Par Value

question 165

Multiple Choice

The Nice Corporation issues 8,000 shares of $100 par value preferred stock for cash at $110 per share. The entry to record the transaction will consist of a debit to Cash for $880,000 and a credit or credits to

• A) Preferred Stock for $880,000.
• B) Paid-in Capital from Preferred Stock for $880,000.
• C) Preferred Stock for $800,000 and Retained Earnings for $80,000.
• D) Preferred Stock for $800,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $80,000.

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Definitions:

Existence

The state or fact of being real, present, or alive.

Strategic Plans

Those plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission.