The Shareholders' Equity Section of Winters Company Contained the Following

question 4

Essay

The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
During 2011, Winters entered into the following transaction: On September 26, the company issued 200 shares of its 10 percent preferred stock at $23 per share. Which of the following would be included in the September 26 journal entry?
a. a debit to Preferred Stock for $3,000.
b. a credit to Cash for $4,600.
c. a debit to Cash for $3,000.
d. a credit to Additional Paid-In Capital, 10% Preferred Stock for $1,600.

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Definitions:

American Arbitration Association

A not-for-profit organization that provides arbitration and mediation services to individuals and organizations to resolve disputes outside of court.

Court-appointed Attorneys

Lawyers assigned by a court to represent defendants who cannot afford legal representation.

For-profit Firms

Businesses or corporations that operate with the primary goal of earning profits for their owners or shareholders, including many law firms.

Collaborative Law

A legal process enabling couples who have decided to separate or end their marriage to work with their lawyers and, on occasion, other family professionals to achieve a settlement that best meets the specific needs of both parties and their children.