A corporation was formed on January 1. The corporate charter authorized 100,000

Question

A corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 390 shares to its attorneys in payment of a $5,900 charge for drawing up the articles of incorporation. The entry to record this transaction would include:


A credit to Common Stock for $5,900.
A debit to Organization Expenses for $5,900.
A debit to Organization Expenses for $3,900.
A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.
A credit to Paid-in Capital in Excess of Par Value, Common Stock for $5,900.

Explanation / Answer

A debit to Organization Expenses for $3,900.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.