Equinox Outdoor Wear issues 1,000 shares of its $0.01 par value preferred stock for cash at $32 per share. What is the correct entry torecord the stock issuance?O a. Debit to Cash, $32,000; Credit to Preferred Stock, $32,000O b. Debit to Cash, $32,000; Credit to Additional Paid-in Capital, $32,000O C. Debit to Cash, $32,000; Credit to Common Stock, $31,990; Credit to Additional Paid-in Capital, $10O d. Debit to Cash, $32,000; Credit to Preferred Stock, $10; Credit to Additional Paid-In Capital-Common Stock, $31.990

A journal entry is a basic accounting record that is used to chronologically track financial…

Answered: 990; Credit to Additional Paid-in…

Business

Accounting

990; Credit to Additional Paid-in Capital, $10 21.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Equinox Outdoor Wear issues 1,000 shares of its $0.01 par value preferred stock for cash at $32 per share. What is the correct entry to
record the stock issuance?
O a. Debit to Cash, $32,000; Credit to Preferred Stock, $32,000
O b. Debit to Cash, $32,000; Credit to Additional Paid-in Capital, $32,000
O C. Debit to Cash, $32,000; Credit to Common Stock, $31,990; Credit to Additional Paid-in Capital, $10
O d. Debit to Cash, $32,000; Credit to Preferred Stock, $10; Credit to Additional Paid-In Capital-Common Stock, $31.990

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