Solved

The Company Issued 7,000 Shares of Stock in Exchange for Equipment

Question 142

Multiple Choice

The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $320,000. The entry to record transaction 1 would be:


A) Start-up and Organization Costs 8,000
Common Stock 8,000
B) Start-up and Organization Costs 10,000
Common Stock 8,000
Additional Paid-in Capital 2,000
C) Start-up and Organization Costs 8,000
Additional Paid-in Capital 8,000
D) Start-up and Organization Costs 10,000
Common Stock 10,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents