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A corporation issued 270 shares of its $5 par value common stock in payment of a $3,500 charge from its accountant for assistance in filing

A corporation issued 270 shares of its $5 par value common stock in payment of a $3,500 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

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  • A $3,500 credit to Common Stock.

  • A $1,350 debit to Organization Expenses.

  • A $2,150 credit to Paid-in Capital in Excess of Par Value, Common Stock.

  • A $3,500 debit to Legal Expenses.

  • A $3,500 credit to Cash.

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