Homework Answers
| Component | Amount | No of share | Amount | Nature | Account |
| Face value | $ 46.00 | 13400 | $ 616,400.00 | Credit | Preferred stock |
| Security premium | $ 15.00 | 13400 | $ 201,000.00 | Credit | Paid-in capital in excess of par-preferred stock value |
| Selling price | $ 61.00 | 13400 | $ 817,400.00 | Debit | Bank account |
| So option C is correct. | |||||
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