Problemwatson inc issues 5000 shares of 6 100 par value, Ask an Expert

Accounting

Problem:

Watson, Inc. issues 5,000 shares of 6%, $100 par value, cumulative preferred stock for $200 per share. The entry to record this transaction would include all of the following EXCEPT:

• A debit to cash for $1,000,000
• A credit to preferred stock for $ 500,000
• A credit to Paid-in Capital in Excess of Par Value - Preferred Stock for $500,000
• All of the answers are correct.

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164950

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