The following information was taken from the statement of shareholders' equity of Carnival Industries:
The journal entry to record the issuance of preferred stock during 2010 would include:
a. a debit to Preferred Stock for $900.
b. a credit to Preferred Stock for $500.
c. a credit to Additional Paid in Capital for $500.
d. a credit to Cash for $500.

Question

The following information was taken from the statement of shareholders' equity of Carnival Industries:
  The journal entry to record the issuance of preferred stock during 2010 would include: 
a. a debit to Preferred Stock for $900.
b. a credit to Preferred Stock for $500.
c. a credit to Additional Paid in Capital for $500.
d. a credit to Cash for $500.

Quizplus · Accepted Answer

The Answer of The following information was taken from the statement of shareholders' equity of Carnival Industries:
  The journal entry to record the issuance of preferred stock during 2010 would include: 
a. a debit to Preferred Stock for $900.
b. a credit to Preferred Stock for $500.
c. a credit to Additional Paid in Capital for $500.
d. a credit to Cash for $500.

The Following Information Was Taken from the Statement of Shareholders