What issuance should be recorded with a debit to cash for

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Reference no: EM132741968

Problem 1: Columbia Clay, Inc. issues 1.18 million shares of preferred stock with a par value of $11.00 at its market price of $35.00 per share. The issuance should be recorded with a debit to Cash for:

Multiple Choice

Option 1: $41.30 million, a credit to Preferred Stock for $12.98 million, and a credit to Additional Paid-in Capital for $28.32 million.
Option 2: $28.32 million, a credit to Additional Paid-in Capital for $12.98 million, and a credit to Preferred Stock for $41.30 million.
Option 3: $12.98 million and a credit to Preferred Stock for $12.98 million.
Option 4: $41.30 million and a credit to Preferred Stock for $41.30 million.

Reference no: EM132741968

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