Question
A company issues 100 shares and received $2,000. With the proceeds pays $200 in legal fees, accounting fees, underwriting commissions and mailing, registration and advertising
A company issues 100 shares and received $2,000. With the proceeds pays $200 in legal fees, accounting fees, underwriting commissions and mailing, registration and advertising costs. Which is the journal entry that better reflects the transaction:
| Dr. Cash | $2,000 | |
| Dr. Organization Costs | $200 | |
| Cr. Common Shares | $2,000 | |
| Cr. Accounts Payable | $200 |
None of the other alternatives are correct
Dr. Cash $2,000 and Cr. Common Shares $2,000
| Dr. Cash | $2,000 | |
| Dr. Organization Costs | $200 | |
| Cr. Common Shares | $2,200 |
| Dr. Cash | $1,800 | |
| Dr. Organization Costs | $200 | |
| Cr. Common Shares | $2,000 |
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Financial Accounting For Decision Makers
Authors: Mark DeFond
2nd Edition
1618533142, 9781618533142
