Abdulla Co. issues 4,000 shares of $90 par value preferred stock for cash at $100 per share. Choose the right journal entry related to the issuance of the preferred stock: Multiple Choice cash $400,000 (debit), preferred stock $400,000 (credit) preferred stock $460,000 (debit), paid in capital $40,000 (debit), cash $500,000 (credit) cash $500,000 (debit), preferred stock $460,000 (credit), paid in capital $40,000 (credit) cash $400,000 (debit), preferred stock $360,000 (credit), paid in capital $40,000 (credit)

Given information: No of shares issued 4000 shares Par value $90 Issue price $100

Answered: Abdulla Co. issues 4,000 shares of $90…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting...

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Abdulla Co. issues 4,000 shares of $90 par value preferred stock for cash at $100 per share. Choose the right journal entry related to the issuance of the preferred stock:

Multiple Choice

cash $400,000 (debit), preferred stock $400,000 (credit)
preferred stock $460,000 (debit), paid in capital $40,000 (debit), cash $500,000 (credit)
cash $500,000 (debit), preferred stock $460,000 (credit), paid in capital $40,000 (credit)
cash $400,000 (debit), preferred stock $360,000 (credit), paid in capital $40,000 (credit)

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