Peterson, Inc. issued 4,000 shares of preferred stock for $240,000. The stock has a par value of $60 per share. The journal entry to record this transaction would ________
A) credit Cash $240,000, debit Preferred Stock-$60 Par Value $4,000, and debit Paid-In Capital in Excess of Par-Preferred $236,000
B) debit Cash $240,000, credit Preferred Stock-$60 Par Value $4,000, and credit Paid-In Capital in Excess of Par-Preferred $236,000
C) credit Cash $240,000 and debit Preferred Stock-$60 Par Value $240,000
D) debit Cash $240,000 and credit Preferred Stock-$60 Par Value $240,000
D .D)
Cash 240,000
Preferred Stock—$60 Par Value (4,000 x $60 ) 240,000
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a. an estate for years b. a fee simple c. a life estate d. an estate at will
Which statement is true of a general partnership?
A) The liability of each partner is limited to his or her own acts and omissions. B) The business pays a standard corporate income tax. C) The partnership acts like a corporation, selling stock on a stock exchange. D) Some partners contribute only an investment but do not have any management responsibility or liability. E) Two or more partners are responsible for the business and share profits, liabilities, and management responsibilities.