Sea the World Cruises, Inc., began operations in January by issuing 500,000 shares of $0.10 par value common stock for $10 per share. It also issued 1,000 shares of $150 par value, 6%, cumulative preferred stock for $150 each. The journal entry to record the issuance of the preferred stock includes a ______.

a. debit Cash $9,000
b. debit Preferred Stock $150,000
c. debit Preferred Stock $9,000
d. credit Cash $9,000
e. credit Preferred Stock $9,000
f. debit Cash $150,000
g. credit Cash $150,000
h. credit Preferred Stock $150,000


Answer:
f. debit Cash $150,000
h. credit Preferred Stock $150,000

Business

You might also like to view...

At which point is supervision most critical in the cash receipts system?

a. accounts receivable b. general ledger c. mail room d. cash receipts

Business

The use of financial performance measures independent of other performance measures give _____ of causes of performance.

What will be an ideal response?

Business

If preferred stock is cumulative and no dividends are declared, the company subtracts the current year preferred dividend in computing earnings per share

a. true b. false

Business

In addition to regulations, agencies issue larger volumes of _____ in documents such as memoranda, circulars, compliance manuals, and advisory opinions.

A. rules B. policies C. principles D. guidance

Business