Nice Corporation Issues 30,000 Shares of $100 Par Value Preferred

question 158

Multiple Choice

Nice Corporation issues 30,000 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 $3,300,000 and a credit or credits to

• A) Preferred Stock for $3,300,000.
• B) Preferred Stock for $3,000,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $300,000.
• C) Preferred Stock for $3,000,000 and Retained Earnings for $300,000.
• D) Paid-in Capital from Preferred Stock for $3,300,000.

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Definitions:

Price Floors

A minimum price, set by law or agreement, below which a commodity cannot legally be sold, often used in agriculture to stabilize market prices.

Taxes

Compulsory financial charges imposed by a government on individuals, businesses, or transactions to fund public spending.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, engaged in professional, commercial, or industrial activities.

Labor Hours

Labor hours refer to the total number of hours worked by employees within a specified period, often used to measure productivity and labor costs.