The Entry to Record the Issuance of 150 Shares of $5

question 143

Multiple Choice

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to

• A) Organizational Expenses
• B) Goodwill
• C) Common Stock
• D) Cash

---

Definitions:

Assessed Valuation

A property value determined by a representative of the local or state government.

Taxation

The process by which governments finance their expenditure by imposing charges on citizens and corporate entities.

Tax Rate

The percent used to calculate a tax.

Sales Tax

A government charge on retail sales of certain goods and services.