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Fair Corporation issues 7,500 preferred shares for $25 per share.
-The entry to record the transaction will consist of a debit to Cash for $187,500 and a credit or credits to
A) Preferred Shares for $187,500.
B) Preferred Shares for $100,000 and Share Capital for $87,500.
C) Preferred Shares for $100,000 and Retained Earnings for $87,500.
D) Investment in Preferred Shares for $187,500.

Question

Quizplus · Accepted Answer

The correct entry to record the issuance of preferred shares is to credit the Preferred Shares account for the total amount received, which is $187,500 (7,500 shares x $25 per share).

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