Logan Corporation Issues 50,000 Shares of $50 Par Value Preferred

question 33

Multiple Choice

Logan Corporation issues 50,000 shares of $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $3,000,000 and a credit or credits to

• A) Preferred Stock for $3,000,000.
• B) Preferred Stock for $2,500,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $500,000.
• C) Preferred Stock for $2,500,000 and Retained Earnings for $500,000.
• D) Paid-in Capital from Preferred Stock for $3,000,000.

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Definitions:

Blockage

Blockage refers to the obstruction or closing off of a passage or vessel, impeding or stopping the flow within it.

Cardiovascular Disease

A general term for conditions affecting the heart and blood vessels, such as coronary artery disease, heart attacks, and stroke.

Hypertension

Form of cardiovascular disease characterized by blood pressure over 140/95 (over 45 years of age) or 130/90 (under 45 years of age).

Silent Killer

A term often used for a disease or condition that progresses without obvious symptoms until significant damage has occurred, such as hypertension.