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Air Ace Corporation issues 5,000 preferred shares for $40 per share.
-In the statement of financial position, the effects of the above transaction will be reported under
A)liabilities.
B)retained earnings.
C)share capital.
D)accumulated other comprehensive income.

Question

Use the following information for questions 
Air Ace Corporation issues 5,000 preferred shares for $40 per share.
-In the statement of financial position, the effects of the above transaction will be reported under
A)liabilities.
B)retained earnings.
C)share capital.
D)accumulated other comprehensive income.

Quizplus · Accepted Answer

The issuance of preferred shares is a transaction related to share capital and will increase the company's share capital on the statement of financial position.

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