Fronthouse Corp.issues 10,000 shares of no-par value preferred stock for cash at $60 per share.The journal entry to record the transaction will consist of a debit to Cash for $600,000 and a credit (or credits)to:
A) Preferred Stock for $600,000.
B) Preferred Stock for $20,000 and Additional Paid-in Capital for $580,000.
C) Preferred Stock for $20,000 and Retained Earnings for $580,000.
D) Retained Earnings for $600,000.

Question

Quizplus · Accepted Answer

The entire amount received from issuing no-par value stock is credited to the Preferred Stock account.