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Supper Company Ltd., reported the following stockholders’ equity on its balance sheet at June 30, 2021: Supper Company Ltd. Stockholders’ Equity June 30,2021   Paid-in Capital   Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued $ 1,400,000 Common stock, par value $? per share, 5,000,000 shares authorized, 1,000,000 shares issued and outstanding 2,000,000 Paid-in capital in excess of par—common 6,000,000   Which of the following is the correct journal entry to record the stock activity for $1,400,000? a. DR Cash $1,400,000 and CR Common Stock $1,400,000 b. DR Preferred Stock $1,400,000 and CR Cash $1,400,000 c. DR Cash $1,400,000 and CR Preferred Stock $1,400,000 d. DR Common Stock $1,400,000 and CR Preferred Stock $1,400,000

Supper Company Ltd., reported the following stockholders’ equity on its balance sheet at June 30, 2021: Supper Company Ltd. Stockholders’ Equity June 30,2021   Paid-in Capital   Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued $ 1,400,000 Common stock, par value $? per share, 5,000,000 shares authorized, 1,000,000 shares issued and outstanding 2,000,000 Paid-in capital in excess of par—common 6,000,000   Which of the following is the correct journal entry to record the stock activity for $1,400,000? a. DR Cash $1,400,000 and CR Common Stock $1,400,000 b. DR Preferred Stock $1,400,000 and CR Cash $1,400,000 c. DR Cash $1,400,000 and CR Preferred Stock $1,400,000 d. DR Common Stock $1,400,000 and CR Preferred Stock $1,400,000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...
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Supper Company Ltd., reported the following stockholders’ equity on its balance sheet at June 30, 2021:

Supper Company Ltd.

Stockholders’ Equity

June 30,2021

 

Paid-in Capital

 

Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued

$ 1,400,000

Common stock, par value $? per share, 5,000,000 shares authorized,

1,000,000 shares issued and outstanding

2,000,000

Paid-in capital in excess of par—common

6,000,000

 

Which of the following is the correct journal entry to record the stock activity for $1,400,000?

a.

DR Cash $1,400,000 and CR Common Stock $1,400,000

b.

DR Preferred Stock $1,400,000 and CR Cash $1,400,000

c.

DR Cash $1,400,000 and CR Preferred Stock $1,400,000

d.

DR Common Stock $1,400,000 and CR Preferred Stock $1,400,000

Supper Company Ltd., reported the following stockholders' equity on its balance sheet at June 30, 2021: Supper Company Ltd. Stockholders' Equity June 30,2021 Paid-in Capital Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued $1,400,000 2,000,000 Common stock, par value $? per share, 5,000,000 shares authorized, 1,000,000 shares issued and outstanding Paid-in capital in excess of par-common 6,000,000 Which of the following is the correct journal entry to record the stock activity for $1,400,000? a. DR Cash $1,400,000 and CR Common Stock $1,400,000 O b. DR Preferred Stock $1,400,000 and CR Cash $1,400,000 O c. DR Cash $1,400,000 and CR Preferred Stock $1,400,000 O d. DR Common Stock $1,400,000 and CR Preferred Stock $1,400,000
Transcribed Image Text:Supper Company Ltd., reported the following stockholders' equity on its balance sheet at June 30, 2021: Supper Company Ltd. Stockholders' Equity June 30,2021 Paid-in Capital Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued $1,400,000 2,000,000 Common stock, par value $? per share, 5,000,000 shares authorized, 1,000,000 shares issued and outstanding Paid-in capital in excess of par-common 6,000,000 Which of the following is the correct journal entry to record the stock activity for $1,400,000? a. DR Cash $1,400,000 and CR Common Stock $1,400,000 O b. DR Preferred Stock $1,400,000 and CR Cash $1,400,000 O c. DR Cash $1,400,000 and CR Preferred Stock $1,400,000 O d. DR Common Stock $1,400,000 and CR Preferred Stock $1,400,000
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