Use the Following Information for Questions

Multiple Choice

Use the following information for questions
Air Ace Corporation issues 5,000 preferred shares for $40 per share.
-The entry to record the transaction will consist of a debit to Cash for $200,000 and a credit or credits to

A) Preferred Shares for $200,000.
B) Preferred Shares for $150,000 and Share Capital for $50,000.
C) Preferred Shares for $150,000 and Retained Earnings for $50,000.
D) Investment in Preferred Shares for $200,000.