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Question(s) / Instruction(s):

A corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 310 shares to its attorneys in payment of a $5,100 charge for drawing up the articles of incorporation. The entry to record this transaction would include:

a)            A credit to Common Stock for $5,100.

b)            A debit to Organization Expenses for $3,100.

c)            A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.

d)            A credit to Paid-in Capital in Excess of Par Value, Common Stock for $5,100.

e)            A debit to Organization Expenses for $5,100.

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