The Northern Corporation Issues 7,000 Shares of $100 Par Value

Multiple Choice

The Northern Corporation issues 7,000 shares of $100 par value preferred stock for cash at $120 per share. The entry to record the transaction will consist of a debit to Cash for $840,000 and a credit or credits to

A) Preferred Stock for $840,000.
B) Paid-in Capital from Preferred Stock for $840,000.
C) Preferred Stock for $700,000 and Retained Earnings for $140,000.
D) Preferred Stock for $700,000 and Paid-in Capital in Excess of Par-Preferred Stock for $140,000.