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13 December, 16:03

The Snow Corporation issues 14,000 shares of $54 par value preferred stock for cash at $68 per share. The entry to record the transaction will consist of a debit to Cash for $952,000. What credit or credits will the entry consist of

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  1. 13 December, 17:36
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    Preferred stock for $756000 and Paid-in Capital in Excess of Par Value - Preferred Stock for $196000

    Explanation:

    Given number of shares = 14000

    Par value of share = $54

    Issued for cash = $68 per share

    The cash debit amount = $952000

    Preferred stock for $756000 and Paid-in Capital in Excess of Par Value - Preferred Stock for $196000

    Cash (14000*68) Dr. 952000

    Preferred Stock (14000*54) Cr. 756000

    Paid in Capital in Par Value - Preferred Stock (14000*14) Cr. 196000
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