Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
Fair Corporation issues 7,500 preferred shares for $25 per share.
-The entry to record the transaction will consist of a debit to Cash for $187,500 and a credit or credits to

A) Preferred Shares for $187,500.
B) Preferred Shares for $100,000 and Share Capital for $87,500.
C) Preferred Shares for $100,000 and Retained Earnings for $87,500.
D) Investment in Preferred Shares for $187,500.