Birch Is a Publicly Traded Company and Issues 200 Preferred

question 53

Multiple Choice

Birch is a publicly traded company and issues 200 preferred shares for $12 per share. Which of the following is a part of the journal entry for this transaction?

• A) Debiting preferred shares for $2,400
• B) Crediting preferred shares for $2,400
• C) Crediting cash for $2,400
• D) Crediting preferred shares for $200
• E) Debiting preferred shares for $200

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Definitions:

Motivated

Having a strong drive or incentive to accomplish a task, goal, or objective, often driven by internal or external factors.

Open Membership

A policy allowing anyone interested to join a group or organization without restrictions or prerequisites.

Cohesive

Possessing the ability to stick together or form a unified whole, often referring to the unity or bond within a group or organization.

Group Think

A phenomenon where a group's desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.