a-company-issues-100000-shares-of-1-par-value-common-stock-for-legal-services-va

Question

A company issues 100,000 shares of $$1 par value common stock for legal services valued at 120$$,000. What is the journal entry to record this transaction?

Accepted Answer

Debit Legal Expense $$120,000; Credit Common Stock 100$$,000; Credit APIC $20,000.

Answer

Debit Legal Expense $$100,000; Credit Common Stock 100$$,000; Credit APIC $20,000.

Answer

Debit Legal Expense $$120,000; Credit Common Stock 120$$,000.

Answer

Debit Legal Expense $$120,000; Credit APIC 120$$,000.

A company issues 100,000 shares of \$1 par value common stock for legal services valued at \$120,000. What is the journal entry to record this transaction?