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Question



tps:/ ml M McGraw-Hill Connect & Google Apple ICloud D Yahoo Bing D Wikipedia D Facebook D Twitter D Linkedin D The Weather Channel D Ye Test 4 Chapters 10 and 11 MC Help Save & Exi A corporation issued 240 shares of its $5 par value common stock in payment of a $3,200 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include: Multiple Choice A $3,200 credit to Common Stock. A $1.200 debit to Organization Expenses A $2,000 credit to Paid-in Capital in Excess of Par Value, Common Stock A $3.200 debit to Legal Expenses 3

Explanation / Answer

Solution: A $2000 credit to Paid in Capital in Excess of Par Value, Common Stock

Eexplanation: $3,200 - (240*$5) = $2,000