Determine record transaction for receivable-preferred

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Problem 1. A corporation received a subscription for 1,100 shares of 10 percent, $100 par-value preferred stock at $112 a share. The entry to record this transaction consists of a debit to Subscriptions Receivable-Preferred for $123,200 and a credit to

Option a. Preferred Stock Subscribed for $110,000 and a credit to Gain on Sale of Preferred Stock for $13,200.

Option b. Preferred Stock Subscribed for $123,200.

Option c. Preferred Stock Subscribed for $110,000 and a credit to Paid-in Capital in Excess of Par Value-Preferred Stock for $13,200.

Option d. Preferred Stock for $110,000 and a credit to Retained Earnings for $13,200.

Reference no: EM132470169

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