The Harvester Corporation issued 40 shares of $20 par value stock to its accountant.The shares are in full payment for her $900 fee for assistance in setting up the new company.The entry to record the issuance of the stock would include a:

Question

Quizplus · Accepted Answer

The correct entry includes a credit to Common Stock for $800 because the par value of the stock is $20, and 40 shares were issued, resulting in a total par value of $800 (40 shares * $20 par value per share).

The Harvester Corporation Issued 40 Shares of $20 Par Value