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Financial Accounting

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Indicate Journal Entry If Issue Shares In Exhange For Rent

FINACT-WJKTJL

Pat Inc. began business on January 1, Year 1. The corporate charter authorized issuance of 5,000 shares of \$1 par value common stock, and 4,000 shares of \$8 par value, 6% cumulative preferred stock. None of the preferred shares were issued. On July 1, Poole issued 1,000 shares of common stock in exchange for two years rent on a retail location. The cash rental price is \$2,400 per month and the rental period begins on July 1.

The correct entry to record the July 1 transaction will include which of these accounts and amounts?

Select ALL that apply.

A

Credit to cash for \$57,600.

B

Debit to Prepaid Rent for \$57,600.

C

Credit to Common Stock, par for \$57,600.

D

Credit to Paid-in-Capital in Excess of Par for \$56,600.

E

Credit to Common Stock, par for \$1,000.

F

Debit to Rent Expense for \$57,600.