Simon Company Issued 2,000 Ordinary Shares with a $5 Par

question 257

Multiple Choice

Simon Company issued 2,000 ordinary shares with a $5 par value in payment of its attorney's bill of $40,000. The bill was for services performed in helping the company incorporate. Simon should record this transaction by debiting

• A) Legal Expense for $10,000.
• B) Legal Expense for $40,000.
• C) Organization Expense for $10,000.
• D) Organization Expense for $40,000.

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