What Account Should Be Debited When Stock Issuance Costs Are

question 54

Multiple Choice

What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation?

• A) Organization Expense
• B) Additional Paid-in Capital
• C) Organization Costs
• D) Common stock

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Definitions:

Salaries Expense

The cost incurred by a company to pay for employee services performed during a period.

Time Card

A record of the amount of an employee's time spent on different jobs, typically used for payroll purposes.

Internal Control

A system implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.

Payrolls

The total amount of money a company pays to its employees for a set period of time, including wages, salaries, bonuses, and deductions.