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StupidBoy
StupidBoy
17.12.2019 • 
Business

Poole company began business on january 1, 2015. 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

a. increase cash, $57,600; decrease prepaid rent, $57,600

b. increase prepaid rent, $57,600; increase common stock, $57,600

c. increase prepaid rent, $57,600; increase common stock, $1,000; increase additional paid-in capital-- common, $56,600

d. increase prepaid rent, $57,600; increase common stock, $5,000; increase additional paid-in capital-- common, $52,600

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