Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 270 shares to its attorneys in payment of a $4,700 charge for drawing up the articles of incorporation. The entry to record this transaction would include:

Multiple Choice

• A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.

• A credit to Common Stock for $4,700.

• A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,700.

• A debit to Organization Expenses for $4,700.

• A debit to Organization Expenses for $2,700.