A corporation issued 300 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:

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The issuance of stock in payment of services rendered is known as a stock dividend, and the amount allocated to the par value of the shares issued is recorded in Common Stock. The remaining amount is credited to Paid-in Capital in Excess of Par Value, Common Stock. Therefore, in this case, there should be a $1,500 debit to Organization Expenses (as the accountant's fee relates to the organization of the corporation rather than any legal or accounting fees) and a $1,800 credit to Paid-in Capital in Excess of Par Value, Common Stock. There is no entry required for Legal Expenses or Cash in this transaction.

A Corporation Issued 300 Shares of Its $5 Par Value