Crain Company Issued 2,000 Shares of Its $5 Par Value

question 187

Multiple Choice

Crain Company issued 2,000 shares of its $5 par value common stock in payment of its attorney's bill of $30,000.The bill was for services performed in helping the company incorporate.Crain should record this transaction by debiting

• A)Legal Expense for $10,000.
• B)Legal Expense for $30,000.
• C)Organization Expense for $10,000.
• D)Organization Expense for $30,000.

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