The Sneed Corporation issues 10000 shares of 50 par preferre

The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share.  The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

Paid-In Capital from Preferred Stock for $750,000

Preferred Stock for $500,000 and Retained Earnings for $250,000

Preferred Stock for $500,000 and Paid-In Capital in Excess of Par—Preferred Stock for $250,000

Preferred Stock for $750,000

	a.	Paid-In Capital from Preferred Stock for $750,000
	b.	Preferred Stock for $500,000 and Retained Earnings for $250,000
	c.	Preferred Stock for $500,000 and Paid-In Capital in Excess of Par—Preferred Stock for $250,000
	d.	Preferred Stock for $750,000

Solution

Preferred Stock for $500,000 and Paid-In Capital in Excess of Par—Preferred Stock for $250,000 Option C is correct