Question

Help I System Announcements CALCULATOR PRINTER VERSION BACK NEXT Multiple Choice Question 103 SheridanCom pany is authorized to issue 1000 stock with a stated value of $1 per share. If Sheridan issues 5000 shares of preferred stock for land with an asking price of $569000 and a market value of $542000, which of the following would be the journal entry for Sheridan to record? 0 shares of 10000%, $100 par value preferred stock and 458000 shares of no-par common ! O Land 542000 Preferred Stock 542000 Land 500000 Preferred Stock 500000 O Land 569000 500000 Preferred Stock 69000 Paid-in Capital in Excess of Par-Preferred 542000 O Land 500000 42000 Preferred Stock Paid-in Capital in Excess of Par-Preferred Sto Click if you would like to Show Work for this question: Qpen Show Work LINK TO TEXT Question Attempts: o of i used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Solution:

Option 'd' is correct.

Explanation:

The land would be recorded at its market value

Dr. Land	$542,000
Cr.Preffered Stock		$500,000(5000×100)
Cr.Paid - in Capital Excess of Par preferred		$42,000