Answer:
Promotion expenses $40,000
To Common stock A/c $40,000
(Being the issuance of the shares is given to promoters is recorded)
Explanation:
The journal entries are shown below:
Promotion expenses $40,000
To Common stock A/c $40,000
(Being the issuance of the shares is given to promoters is recorded)
Since the stock has no stated value so we do not consider the additional paid-in capital in excess of par value account
We only recorded the promotion expenses and the common stock account for $40,000
