A Corporation Received a Subscription for 200 Shares of 10

question 68

Multiple Choice

A corporation received a subscription for 200 shares of 10 percent, $100 par-value preferred stock at $103 a share. The entry to record this transaction consists of a debit to Subscriptions Receivable
-Preferred for $20,600 and a credit to:

• A)Preferred Stock for $20,000 and a credit to Retained Earnings for $600.
• B)Preferred Stock Subscribed for $20,000 and a credit to Gain on Sale of Preferred Stock for
• $600.
• C)Preferred Stock Subscribed for $20,000 and a credit to Paid-in Capital in Excess of Par Value
• -Preferred Stock for $600.
• D)Preferred Stock Subscribed for $20,600.

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Definitions:

Organic Groups

Clusters or families of organic compounds sharing common characteristics or structural features, often categorized by their functional groups.

Protein

Big biological molecules made up of one or more lengthy strands of amino acid components, essential for the formation, operation, and control of the body’s organs and tissues.

Adenine

A purine base found in DNA and RNA, which pairs with thymine in DNA and with uracil in RNA during the formation of nucleic acids.

Nucleotide

A basic building block of DNA and RNA, consisting of a sugar, a phosphate group, and a nitrogenous base.