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 400 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include:
A. A credit to Common Stock for $5,000.
B. A debit to Organization Expenses for $4,000.
C. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $5,000.
D. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.
E. A debit to Organization Expenses for $5,000.
Answer: E
You might also like to view...
When a company declares a 2-for-1 stock split,
a. stockholders' equity is doubled. b. there is no effect on total stockholders' equity. c. a shareholder who previously held 100 shares will have 300 shares after the split. d. the price of each share will be one third of what it was before the stock split.
The total of the individual customer account balances should equal the balance in Accounts Receivable, which is the
A) control account. B) periodic account. C) nominal account. D) contra account.
A nonprofit organization is reviewing its strategic plan to determine if it is ready to participate in a collaboration. The organization is performing which stage of the relationship development process?
A. implementation B. identification of potential partners C. self-examination D. negotiation
Which of the following is true of competition at the persuader stage of personal-selling evolution?
A. competition is undifferentiated and slightly intense. B. competition is differentiated and growing. C. competition is focused and growing. D. competition is almost nonexistent. E. competition is counteractive with increasing resources.