If Alpha Company issued 1,000 shares of $10 par common stock and 1,000 shares of $100 par preferred stock for a lump sum of $120,000 when the market value of the common stock was $20 per share and the market value of the preferred stock was $101 per share, the entry to record the transaction would be A) Cash $120,.000 Preferred Stock $100,0000 Paid-in Capital in excess of par – Preferred 1,000 Common Stock 10,000 Paid-in Capital in excess of par – Common 9,000 B) Cash $120,.000 Preferred Stock $100,0000 Common Stock 10,000 Paid-in Capital in excess of par – Common 10,000 C) Cash $120,.000 Loss on Stock 1,000 Preferred Stock $100,0000 Paid-in Capital in excess of par – Preferred 1,000 Common Stock 10,000 Paid-in Capital in excess of par – Common 10,000 D) Cash $120,.000 Preferred Stock $100,0000 Paid-in Capital in excess of par – Preferred 165 Common Stock 10,000 Paid-in Capital in excess of par – Common 9,835
If Alpha Company issued 1,000 shares of $10 par common stock and 1,000 shares of $100 par preferred stock for a lump sum of $120,000 when the market value of the common stock was $20 per share and the market value of the preferred stock was $101 per share, the entry to record the transaction would be
A) Cash $120,.000
Preferred Stock $100,0000
Paid-in Capital in excess of par – Preferred 1,000
Common Stock 10,000
Paid-in Capital in excess of par – Common 9,000
B) Cash $120,.000
Preferred Stock $100,0000
Common Stock 10,000
Paid-in Capital in excess of par – Common 10,000
C) Cash $120,.000
Loss on Stock 1,000
Preferred Stock $100,0000
Paid-in Capital in excess of par – Preferred 1,000
Common Stock 10,000
Paid-in Capital in excess of par – Common 10,000
D) Cash $120,.000
Preferred Stock $100,0000
Paid-in Capital in excess of par – Preferred 165
Common Stock 10,000
Paid-in Capital in excess of par – Common 9,835
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