Answered: Sunshine Corp. was organized on Jan. 1…

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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Question

Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the account that should be recorded in the Description column of the Journal item (2) as the credit account and the dollar amount in the amount columns assuming that Sunshine Corp on Jan . 15 received cash for the issuance of 2,000 shares of preferred stock at par value.

JOURNAL

Date	Description	P.Ref	DEBIT	CREDIT
Jan. 15	(1)		(?)
	(2)			(?)
	(2)			(?)

Group of answer choices

Preferred Stock credit $200,000

Preferred Stock credit for $10,000

Cash credit for $200,000

Cash credit for $10,000

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