The Snow Corporation issues 14,000 shares of $54 par value preferred stock for cash at $68 per share. The entry to record the transaction will consist of a debit to Cash for $952,000. What credit or credits will the entry consist of

Preferred stock for $756000 and Paid-in Capital in Excess of Par Value - Preferred Stock for $196000

Explanation:

Given number of shares = 14000

Par value of share = $54

Issued for cash = $68 per share

The cash debit amount = $952000

Preferred stock for $756000 and Paid-in Capital in Excess of Par Value - Preferred Stock for $196000

Cash (14000*68) Dr. 952000

Preferred Stock (14000*54) Cr. 756000

Paid in Capital in Par Value - Preferred Stock (14000*14) Cr. 196000