A company issues 100 shares at $10 each. The company received $1,000 and paid $50 in legal fees, accounting fees, underwriting commissions and mailing, registration and advertising costs. Which is the journal entry that better reflects the transaction:

Multiple Choice

Choice 1: Dr. Cash $ 1,000

Dr. Organization Costs $ 50

Cr. Common Shares $ 1,050

Choice 2: None of the other alternatives are correct

Choice 3: Dr. Cash $ 950

Dr. Organization Costs $ 50

Cr. Common Shares $ 1,000

Choice 4: Dr. Cash $ 1,000

Dr. Organization Costs $ 50

Cr. Common Shares $ 1,000

Cr. Accounts Payable $ 50

Choice 5: Dr. Cash $1,000

Cr. Common Shares $1,000