Issuing Par Value Stock Video Lessons

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Problem: What is the correct entry for the sale of 200 shares of $10 par value preferred stock for $5,000? A. Dr. Cash $5,000; Cr. Preferred Stock $5,000 B. Dr. Cash $2,000; Cr. Preferred Stock $2,000 C. Dr. Preferred Stock $2,000,Contributed Capital in Excess of Par $3,000; Cr. Cash $5,000 D. Dr. Cash $5,000; Cr. Preferred Stock $2,000, Contributed Capital in Excess of Par $3,000 

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What is the correct entry for the sale of 200 shares of $10 par value preferred stock for $5,000?

A. Dr. Cash $5,000; Cr. Preferred Stock $5,000

B. Dr. Cash $2,000; Cr. Preferred Stock $2,000

C. Dr. Preferred Stock $2,000,Contributed Capital in Excess of Par $3,000; Cr. Cash $5,000

D. Dr. Cash $5,000; Cr. Preferred Stock $2,000, Contributed Capital in Excess of Par $3,000 

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