Preferred Stock – Ford Online Accounting Manual

Liabilities and Net Worth

PREFERRED STOCK	NET WORTH ACCOUNT
	2800

Par value, or if no par value, the stated value, of preferred stock issued and outstanding.

			Jrnl.	Dr.	Cr.

Issuance of preferred stock at par			CR
	Cash in Bank—General			1001
		Preferred Stock			2800

This account should be used only by dealerships operating as corporations.
The balance in this account should agree with the outstanding preferred stock recorded in the preferred stock register.
Preferred stock reacquired by gift or purchase should be charged to Account 2803, Treasury Stock, and continue to be recorded as outstanding in Account 2800 until legally retired.
Transactions involving issuance, purchase or retirement of Preferred stock should be handled in accordance with accounting advice and legal and tax counsel.