The Sneed Corporation Issues 10,000 Shares of $50 Par Preferred

question 152

Multiple Choice

The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

• A) Preferred Stock for $750,000
• B) Preferred Stock for $500,000 and Paid-In Capital in Excess of Par-Preferred Stock for $250,000
• C) Preferred Stock for $500,000 and Retained Earnings for $250,000
• D) Paid-In Capital from Preferred Stock for $750,000