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 270 shares to its attorneys in payment of a $4,700 charge for drawing up the articles of incorporation. The entry to record this transaction would include: Multiple Choice A debit to Organization Expenses for $2,700. A credit to Common Stock for $4,700. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000. A debit to Organization Expenses for $4,700. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,700.
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 270 shares to its attorneys in payment of a $4,700 charge for drawing up the articles of incorporation. The entry to record this transaction would include: Multiple Choice A debit to Organization Expenses for $2,700. A credit to Common Stock for $4,700. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000. A debit to Organization Expenses for $4,700. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,700.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting...
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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 270 shares to its attorneys in payment of a $4,700 charge for drawing up the articles of incorporation. The entry to record this transaction would include:
Multiple Choice
-
A debit to Organization Expenses for $2,700.
-
A credit to Common Stock for $4,700.
-
A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.
-
A debit to Organization Expenses for $4,700.
-
A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,700.
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