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 (1) as the debit 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
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 (1) as the debit 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5
JOURNAL
|
Date |
Description |
P.Ref |
DEBIT |
CREDIT |
|
Jan. 15 |
(1) |
|
(?) |
|
|
|
(2) |
|
|
(?) |
|
|
(2) |
|
|
(?) |
Group of answer choices
Preferred Stock debit $200,000
Paid-In Capital in Excess Par - Preferred Stock debit for $10,000
Cash debit for $200,000
Cash debit for $10,000
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