Druffle Industries Issues 5,000 Shares of $100 Par, 7% Noncumulative

Multiple Choice

Druffle Industries issues 5,000 shares of $100 par, 7% noncumulative, nonparticipating preferred stock at par. The correct journal entry to record this stock issue is:

A) Debit Cash $35,000; credit Preferred Stock $35,000.
B) Debit Preferred Stock $35,000; credit Cash $35,000.
C) Debit Cash $535,000; credit Preferred Stock $500,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $35,000.
D) Debit Cash $535,000; credit Preferred Stock $535,000.
E) Debit Cash $500,000; credit Preferred Stock $500,000.