Percy Corporation Was Formed on January 1

Multiple Choice

Percy 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 400 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation.The entry to record this transaction would include:

A) A debit to Organization Expenses for $4,000.
B) A debit to Organization Expenses for $5,000.
C) A credit to Common Stock for $5,000.
D) A credit to Paid-in Capital in Excess of Par Value,Common Stock for $5,000.
E) A debit to Paid-in Capital in Excess of Par Value,Common Stock for $2,000.