The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
During 2011, Winters entered into the following transaction: On September 26, the company issued 200 shares of its 10 percent preferred stock at $23 per share. Which of the following would be included in the September 26 journal entry?
a. a debit to Preferred Stock for $3,000.
b. a credit to Cash for $4,600.
c. a debit to Cash for $3,000.
d. a credit to Additional Paid-In Capital, 10% Preferred Stock for $1,600.

Question

The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
  During 2011, Winters entered into the following transaction: On September 26, the company issued 200 shares of its 10 percent preferred stock at $23 per share. Which of the following would be included in the September 26 journal entry? 
a. a debit to Preferred Stock for $3,000.
b. a credit to Cash for $4,600.
c. a debit to Cash for $3,000.
d. a credit to Additional Paid-In Capital, 10% Preferred Stock for $1,600.

Quizplus · Accepted Answer

The Answer of The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
  During 2011, Winters entered into the following transaction: On September 26, the company issued 200 shares of its 10 percent preferred stock at $23 per share. Which of the following would be included in the September 26 journal entry? 
a. a debit to Preferred Stock for $3,000.
b. a credit to Cash for $4,600.
c. a debit to Cash for $3,000.
d. a credit to Additional Paid-In Capital, 10% Preferred Stock for $1,600.

The Shareholders' Equity Section of Winters Company Contained the Following