Hanson Co. issued 10,000 shares of its $5 par common stock for $15 a share. In addition, it incurred legal and accounting fees, stock certificate costs, and other related expenses totaling $8,500. Refer to Exhibit 4. Assume the sale was the initial issuance of stock at incorporation for Hanson Co. The entry to record the sale would include a

             Exhibit 4

Hanson Co. issued 10,000 shares of its $5 par common stock for $15 a share. In addition, it incurred legal and accounting fees, stock certificate costs, and other related expenses totaling $8,500.

Refer to Exhibit 4. Assume the sale was the initial issuance of stock at incorporation for Hanson Co. The entry to record the sale would include a

Answer

		debit to Cash for $150,000
		credit to Common Stock for $150,000
		debit to Organization Expense for $8,500
		credit to Additional Paid-in Capital on Common Stock for $91,500

 

Refer to Exhibit 4. Assume the sale occurred after the initial issuance at incorporation. The entry to record the sale and related expenses would include a

Answer

		credit to Additional Paid-in Capital on Common Stock for $91,500
		credit to Organization Expense for $8,500
		credit to Common Stock for $150,000
		debit to Cash for $150,000

 

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