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?