On January 1, 2012, Georgi Company Was Authorized to Issue

On January 1, 2012, Georgi Company was authorized to issue 10,000 shares of $2 par common stock and 5,000 shares of $5 preferred stock. Given this information, if Georgi Company issued 2,000 shares of preferred stock for $20 per share on January 31, 2012, the entry to record the issuance of the stock would include a

A) Debit to Cash of $30,000
B) Credit to Paid-In Capital in Excess of Par, Preferred Stock of $10,000
C) Credit to Preferred Stock of $40,000
D) Debit to Cash of $40,000

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