A Corporation Issued 100 Shares of Its $5 Par Value

question 118

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

---

Definitions:

Consumption Demand

The desire and ability of consumers to purchase goods and services in an economy, determining the overall level of consumption.

Automatic Stabilizers

Programs and policies in economics formulated to counter changes in a nation's economic status, without the need for more intervention from governmental bodies or policymakers.

Business Cycle

A recurring sequence of economic expansion and contraction phases experienced by a country's economy.

Public Debt

The total amount of money owed by the government to creditors, which can include domestic or foreign individuals, corporations, or other governments.