Use the Following Information to Answer the Question Below

question 66

Short Answer

Use the following information to answer the question below.
When Calvert Corporation was formed on January 1, 2010, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation:
1. The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000 bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency.
2. The company issued 8,000 shares of stock at a price of $25 per share.
3. The company issued 8,000 shares of stock in exchange for equipment that had a fair market value of $160,000.
The entry to record transaction 3 is:

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Definitions:

FDIC

The Federal Deposit Insurance Corporation, a United States government agency that provides deposit insurance to depositors in American commercial banks and savings institutions.

Commercial Banks

Commercial banks are financial institutions that provide a variety of services, including accepting deposits, lending money, and offering checking and savings accounts to individuals and businesses.

Harold Ickes

An American administrator and politician, known for his service as the Secretary of the Interior under President Franklin D. Roosevelt and his work on the New Deal projects.

Public Works Administration

A New Deal agency that contracted with private construction companies to build roads, bridges, schools, hospitals, and other public facilities.