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.
Question 2 Waterway Company is authorized to 3000 shares of 7%, $100 par value preferred stock...
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