A Company Issued 70 Shares of $30 Par Value Preferred

Multiple Choice

A company issued 70 shares of $30 par value preferred stock for $4,000 cash.The journal entry to record the issuance is:

A) Debit Cash $2,100;credit Preferred Stock $2,100.
B) Debit Investment in Preferred Stock $2,100;credit Cash $2,100.
C) Debit Cash $4,000;credit Preferred Stock $4,000.
D) Debit Preferred Stock $2,100,debit Investment in Preferred Stock $1,900;credit Cash $4,000.
E) Debit Cash $4,000;credit Paid-in Capital in Excess of Par Value,Preferred Stock $1,900,credit Preferred Stock $2,100.