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

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 250 shares to its attorneys in payment of a $4,000 charge for drawing upt incorporation. The entry to record this transaction would include: O A debit to Organization Expenses for $4,000 O A credit to Common Stock for $4,000 A credit to Contributed Capital in Excess of Par Value, Common Stock, for $4,000 O A debit to Organization Expenses for $4,500 O A debit to Contributed Capital in Excess of Par Value, Common Stock, for $2.500

Explanation / Answer

Answer: A debit to organization expenses for $4000 The Journal entry would be: Organization expense 4000 Contributed capital in excess of par value 1500 Common stock, $ 10 par value 2500

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