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The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share. The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to ______________.

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Answer:

Preferred stock for $500,000 and additional paid in capital for $200,000

Explanation:

Based on the information given The appropiate journal entry to record the stock issue will consist of a debit to cash for $700,000 and a credit to PREFERRED STOCK FOR $500,000 AND ADDITIONAL PAID IN CAPITAL FOR $200,000

Dr Cash $700,000

(10,000 shares *$70)

Cr Preferred stock $500,000

(10,000 shares *$50)

Cr Additional paid in capital $200,000

($700,000-$500,000)