Question

A corporation issued 100 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state. the entry to record this transaction will include

Answer 1

Since the corporation have issued 100 shares with $5 dollar value per share instead of paying $1,800 charge for the assistance of the accountant, then the calculated amount should only be 100 multiplied by $5 -- which will result to $500. So, they've paid $500 only and saved $1,300 instead of paying $1,800.