The journal entry to record the transaction will consist of a debit to Cash for $600,000 and a credit (or credits) to:
A) Preferred Stock for $600,000.
B) Preferred Stock for $500,000 and Additional Paid-In Capital for $100,000.
C) Preferred Stock for $500,000 and Retained Earnings for $100,000.
D) Investment in Fonthouse Stock for $600,000.

Question

Quizplus · Accepted Answer

The Answer of The journal entry to record the transaction will consist of a debit to Cash for $600,000 and a credit (or credits) to:
A) Preferred Stock for $600,000.
B) Preferred Stock for $500,000 and Additional Paid-In Capital for $100,000.
C) Preferred Stock for $500,000 and Retained Earnings for $100,000.
D) Investment in Fonthouse Stock for $600,000.

The Journal Entry to Record the Transaction Will Consist of a Debit