A Corporation Issued 100 Shares of Its $5 Par Value

question 46

Multiple Choice

A corporation issued 100 shares of its $5 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 $1,800 debit to Legal Expenses.
• C) A $1,800 credit to Cash.
• D) A $1,300 credit to Paid-in Capital in Excess of Par Value, Common Stock.
• E) A $300 debit to Organization Expenses.

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Definitions:

Weber Test

A quick screening test for hearing that involves placing a tuning fork on the center of the forehead to assess bone conduction of sound.

Sensory Deafness

Hearing loss resulting from problems in the inner ear or the neural pathways related to hearing.

Conductive Hearing

A form of hearing that involves the transmission of sound waves through the outer and middle ear components.

Midline

An anatomical term referring to the median plane or the line that divides the body into left and right halves.