A company issues 100 shares and received $2,000. With the proceeds pays $200 in legal fees, accounting fees, underwriting commissions and mailing, registration and advertising costs.

Which is the journal entry that better reflects the transaction:

Multiple Choice

• Dr.	Cash	$	2,000
  Dr.	Organization Costs	$	200
  Cr.	Common Shares			$	2,200

• None of the other alternatives are correct

• Dr.	Cash	$	2,000
  Dr.	Organization Costs	$	200
  Cr.	Common Shares			$	2,000
  Cr.	Accounts Payable			$	200

• Dr.	Cash	$	1,800
  Dr.	Organization Costs	$	200
  Cr.	Common Shares			$	2,000

• Dr. Cash $2,000 and Cr. Common Shares $2,000

Answer rating: 100% (QA)

Solution The journal entry to post would be as below Dr Cash 1800 Dr O... View the full answer