The Nice Corporation issues 10,000 preference shares with a $100 par value for cash at $110 per share. The entry to record the transaction will consist of a debit to Cash for $1,100,000 and a credit or credits to

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The total value of the preference shares issued is $1,100,000 ($110 x 10,000). However, since the par value of the shares is only $100,000 ($100 x 10,000), the excess $1,000,000 is recorded as share premium. Therefore, the entry will be a debit to Cash for $1,100,000, a credit to Share Capital-Preference for $1,000,000, and a credit to Share Premium-Preference for $100,000.

The Nice Corporation Issues 10,000 Preference Shares with a $100