Issuance of Common Stocks - Journal Entry

Solution is available here for U$0.25

A corporate issued 300 shares of its $5.00 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

A) A $1,800 credit to Common stock

B.) A $1,500 debit to Organizational expenses

C.) A $300 credit to contributed capital in Excess of Par Value, Common stock.

D. A $1,800 debit to Legal Expenses

E. A $1,800 credit to cash