Lucie Corporation Was Formed on January 1 of the Current

Multiple Choice

Lucie Corporation was formed on January 1 of the current year. The corporate charter authorized the company to issue 100,000 common shares. During the first month ofoperation, the corporation issued 300 shares to its lawyer in payment of a $5,600 bill for preparing the articles of incorporation. The entry to record this transaction wouldinclude:

A) A credit to Common Shares for $3,300.
B) A debit to Organization Costs for $3,000.
C) A debit to Organization Costs for $5,600.
D) A credit to Organization Costs for $5,600.
E) A debit to Common Shares for $5,600.