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Question 2 Waterway Company is authorized to 3000 shares of 7%, $100 par value preferred stock and 540000 shares of ropar com
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Answer #1

Solution:

Account Title and Explanation Debit Credit
Land $5,46,000
      Preferred Stock (4000*$100) $4,00,000
      Paid in Capital in excess of Par- Preferred Stock $1,46,000

Hence first option is correct.

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