Reference no: EM131206965
A corporation was formed on January 1. The corporate charter authorized 140,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 230 shares to its attorneys in payment of a $3,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include:
A debit to Organization Expenses for $3,500.
A debit to Contributed Capital in Excess of Par Value, Common Stock, for $2,300.
A credit to Contributed Capital in Excess of Par Value, Common Stock, for $3,000.
A debit to Organization Expenses for $3,000.
A credit to Common Stock for $3,000.
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