A Company Issued 1,000 Shares of $1 Par Value Preferred

question 108

Multiple Choice

A company issued 1,000 shares of $1 par value preferred stock for $5 per share.What is true about the journal entry to record the issuance?

• A)Debit Preferred Stock $5,000.
• B)Credit Cash $5,000.
• C)Credit Preferred Stock $5,000.
• D)Credit Additional Paid-In Capital $4,000.