Reference no: EM131215832
A company issued 70 shares of $30 par value preferred stock for $4,000 cash. The journal entry to record the issuance is:
Debit Cash $2,100; credit Preferred Stock $2,100.
Debit Investment in Preferred Stock $2,100; credit Cash $2,100.
Debit Cash $4,000; credit Preferred Stock $4,000.
Debit Preferred Stock $2,100; debit Investment in Preferred Stock $1,900; credit Cash $4,000.
Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900; credit Preferred Stock $2,100.
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