Nice Corporation issues 30,000 shares of $100 par value preferred stock for cash at $110 per share. The entry to record the transaction will consist of a debit to Cash for $3,300,000 and a credit or credits to
A) Preferred Stock for $3,300,000.
B) Preferred Stock for $3,000,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $300,000.
C) Preferred Stock for $3,000,000 and Retained Earnings for $300,000.
D) Paid-in Capital from Preferred Stock for $3,300,000.

Question

Quizplus · Accepted Answer

The entry will credit Preferred Stock for the par value amount ($100 x 30,000 = $3,000,000) and credit Paid-in Capital in Excess of Par Value-Preferred Stock for the excess amount ($10 x 30,000 = $300,000).

Nice Corporation Issues 30,000 Shares of $100 Par Value Preferred