The entry to record the issuance of 15,000 preferred shares at $13.50 per share includes a:

Name: The entry to record the issuance of 15,000 preferred shares at $13.50 per share includes a:
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

Issuing preferred shares increases the company's equity, specifically the Preferred Shares account. Therefore, the entry should include a credit to Preferred Shares for $202,500 (15,000 shares x $13.50 per share). There would be no impact on Retained Earnings or Common Shares in this transaction.

The Entry to Record the Issuance of 15,000 Preferred Shares