Problem:
Watson, Inc. issues 5,000 shares of 6%, $100 par value, cumulative preferred stock for $200 per share. The entry to record this transaction would include all of the following EXCEPT:
• A debit to cash for $1,000,000
• A credit to preferred stock for $ 500,000
• A credit to Paid-in Capital in Excess of Par Value - Preferred Stock for $500,000
• All of the answers are correct.
Note: Show all workings.