Use the following information to answer the question below. When Langston Corporation was formed on January 1, 20x5, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation: 1. The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000
bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency. 2. The company issued 8,000 shares of stock at a price of $25 per share. 3. The company issued 8,000 shares of stock in exchange for equipment that had a fair market value of $160,000. The entry to record transaction 3 is:
A) Equipment 160,000 Common Stock 160,000
B) Common Stock 160,000 Equipment 160,000
C) Additional Paid-in Capital 35,000 Equipment 125,000Common Stock 160,000
D) Cash 160,000 Equipment 160,000
A
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Fill in the blank(s) with the appropriate word(s).
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