AC210 Spring Final Exam Complete Solution Version B

Question: #8191

AC210 Spring 2015 Final Exam Version B

Name ______________________________________ CWID ____________________________

1. A company issues 1 million shares of preferred stock with a par value of $2 and a market price of $26 per share. The issuance should be recorded as:

a. a debit to Cash of $26 million and a credit to Preferred Stock of $26 million.

b. a debit to Cash of $2 million and a credit to Preferred Stock of $2 million.

c. a debit to Cash of $26 million, a credit to Preferred Stock of $2 million, and a credit to Additional Paid-in Capital of $24 million.

d. a debit to Cash of $26 million, a credit to Additional Paid-in Capital of $2 million, and a credit to Preferred Stock of $24 million.

Ivy Corporation is authorized to issue 2,000,000 shares of $4 par value

Solution: #8194

AC210 Spring Final Exam Complete Solution Version B

AC210 Spring 2015 Final Exam Version B Name ______________________________________ CWID ____________________________ 1. A company issues 1 million shares of preferred stock with a par value...