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

Question

Quizplus · Accepted Answer

The entry to record the issuance of the stock would be a credit to Common Stock for the par value of the stock issued, which is $20 per share, multiplied by the number of shares issued, which is 40 shares, for a total of $800. Since the accountant's fee was $900, there would also be a credit to Additional Paid-in Capital for the excess of $100. Thus, the correct answer is choice letter C, which only includes the credit to Common Stock for $800.

TLR Productions Issued 40 Shares of $20 Par Value Stock