The Blanche Corporation issued 50 shares of $28 par value stock to its accountant. The shares are in full payment for her $1,600 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 $1,400, which is calculated by multiplying the 50 shares issued by the $28 par value per share (50 shares * $28 = $1,400). This represents the capital stock portion of the transaction.

The Blanche Corporation Issued 50 Shares of $28 Par Value