Business
Business, 18.03.2020 00:27, karli3065

Cross Corp. had outstanding 2,000 shares of 11% preferred stock, $50 par. On August 8, 2009, Cross redeemed and retired 25% of these shares for $22,500. On that date, Cross’ additional paid-in capital from preferred stock totaled $30,000. To record this transaction, Cross should debit (credit) its capital accounts as follows:

Preferred stock

Additional
paid-in capital

Retained earnings

A.

$25,000

$7,500

($10,000)

B.

$25,000

-

($ 2,500)

C.

$25,000

($2,500)

-

D.

$22,500

-

-

answer
Answers: 2

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Cross Corp. had outstanding 2,000 shares of 11% preferred stock, $50 par. On August 8, 2009, Cross r...

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