1) Percy Corporation was formed on January 1. The corporate charter authorized 1
ID: 2596700 • Letter: 1
Question
1) Percy 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 200 shares to its attorneys in payment of a $4,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include:2)A company issued 70 shares of $100 par value common stock for $8,200 cash. The total amount of paid-in capital in excess of par is: 1) Percy 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 200 shares to its attorneys in payment of a $4,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include:
2)A company issued 70 shares of $100 par value common stock for $8,200 cash. The total amount of paid-in capital in excess of par is:
2)A company issued 70 shares of $100 par value common stock for $8,200 cash. The total amount of paid-in capital in excess of par is:
Explanation / Answer
1) pre incorporation expenses dr 4000
share capital cr. 2000
share premium cr. 2000
2)bank dr. 8200
share capital cr. 7000
share premium cr. 1200
hence the amount paid in excess of par is 1200
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