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A corporation issued 300 shares of its $5 par value common stock in payment of a $3,800 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

Answer :

Parraingo

The entry to record this issuance of stock for its accountant as payment for filing a charter would include a credit of $2,300 to Contributed Capital in excess of par value.

How is stock issuance recorded?

The value of the stock is credited to the Common stock account as:

= 300 x 5

= $1,500

The rest of the amount will then be credited to the Contributed Capital in excess of par value:

= 3,800 - 1,500

= $2,300

Find out more on Contributed Capital in Excess of Par at https://brainly.com/question/25758206.

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