A corporation was formed on January 1. the corporation charter authorized 100,00

Question

A corporation was formed on January 1. the corporation charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corpoation issued 340 shares to its attorneys in payment of a $5400 charge for drawing up the articles of incorporation. The entry to record this transaction would include:

a.) a credit to Paid-in Capital in Excess Captial Excess of Par value, Common Stock for $5,400

b.) a credit to common stock for $5,400

c.) a Debit to Organization expenses for $3,400

d.) a debit to organization expenses for $5,400

e.) a debit to paid-in capital in excess of Par value, Common Stock for $2,000

MUST EXPLAIN for full points!!!

Explanation / Answer

d) a debitto organization expensefor 5400

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