a-company-issues-200000-shares-of-050-par-value-common-stock-for-legal-services-

Question

A company issues 200,000 shares of $0.50 par value common stock for legal services valued at $140,000. What is the journal entry to record this transaction?

Accepted Answer

Debit Legal Expense $140,000; Credit Common Stock $100,000; Credit APIC $40,000.

Answer

Debit Legal Expense $140,000; Credit APIC $140,000.

Answer

Debit Legal Expense $140,000; Credit Common Stock $140,000.

Answer

Debit Legal Expense $100,000; Credit Common Stock $100,000; Credit APIC $40,000.

A company issues 200,000 shares of \$0.50 par value common stock for legal services valued at \$140,000. What is the journal entry to record this transaction?