Answered: Sunshine Corp. was organized on Jan. 1…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

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Question

Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the account that should be recorded in the Description column of the Journal item (2) as the credit account and the dollar amount in the amount columns assuming that Sunshine Corp on Jan . 15 received cash for the issuance of 2,000 shares of preferred stock at par value.

JOURNAL

Date	Description	P.Ref	DEBIT	CREDIT
Jan. 15	(1)		(?)
	(2)			(?)
	(2)			(?)

Group of answer choices

Preferred Stock credit $200,000

Preferred Stock credit for $10,000

Cash credit for $200,000

Cash credit for $10,000

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