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 250 shares to its attorneys in payment of a $4,500 charge for drawing up the articles of incorporation. The entry to record this transaction would include: Multiple Choice A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,500. A debit to Organization Expenses for $2,500. A debit to Organization Expenses for $4,500. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000. A credit to Common Stock for $4,500.
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 250 shares to its attorneys in payment of a $4,500 charge for drawing up the articles of incorporation. The entry to record this transaction would include: Multiple Choice A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,500. A debit to Organization Expenses for $2,500. A debit to Organization Expenses for $4,500. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000. A credit to Common Stock for $4,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 250 shares to its attorneys in payment of a $4,500 charge for drawing up the articles of incorporation. The entry to record this transaction would include:
Multiple Choice
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A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,500.
-
A debit to Organization Expenses for $2,500.
-
A debit to Organization Expenses for $4,500.
-
A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.
-
A credit to Common Stock for $4,500.
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