Using the Following Accounts

question 12

Multiple Choice

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Exchanged common stock for services of corporation organizers (valued above par) .
Debit ________ Credit ________ & ________

• A)Subscription receivable-common stock
• B)Cash
• C)Machinery
• D)Building
• E)Land
• F)Organization costs
• G)Preferred stock
• H)Common stock
• I)Paid in capital in excess of par value - common
• J)Paid in capital in excess of par value - preferred
• K)Common stock subscribed
• L)Discount on common stock
• M)Organization Expense

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Definitions:

Tarantism

A historical form of hysteria or dancing mania reported in southern Italy, supposedly caused by a tarantula bite.

Fourteenth Century

The period from 1301 to 1400 in the Gregorian calendar, notable for significant events in world history, including the Black Death and developments in art and literature.

Tarantula Bite

The act of a tarantula using its fangs to puncture the skin, usually non-lethal to humans but can cause pain and allergic reactions.

Psychic Epidemics

Mass psychological phenomena in which a large number of people exhibit similar mental symptoms or behaviors, often as a result of shared stressors or fears.