Question 4 Ranvir Singh Corp. issued 375 shares of $10 par value ordinary shares and 175 shares of $50 par value prefere

[answerhappygod]

Question 4
Ranvir Singh Corp. issued 375 shares of $10 par value ordinary shares and 175 shares of $50 par value preference shares for a total value of $16,500. The ordinary shares have a market value of $15 per share and the value of preference shares is unknown. What is the journal entry to record the issuance of shares using the incremental method?
a.
Cash 16,500
Preference shares 8,750
Share premium – preference 2,125
Ordinary shares 3,750
Share premium – ordinary 1,875
b.
Cash 16,500
Preference shares 2,750
Share premium – preference 8,125
Ordinary shares 1,750
Share premium – ordinary 3,875
c.
Cash 10,000
A/R 6,500
Preference shares 7,750
Share premium – preference 3,125
Ordinary shares 2,750
Share premium – ordinary 2,875
d.
Cash 16,500
Preference shares 7,750
Share premium – preference 3,125
Ordinary shares 2,750
Share premium – ordinary 2,875