S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an agreement was

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S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an agreement was reached whereby E. Corp. would pay S. Lawyer a legal fee of approximately $15,000 by issuing 8,000 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $1.80 per share. Given this information, the best journal entry for E. Corp. to record for this transaction is

 

Legal Expense     14,400  

       Common Stock          14,400

 

 

Legal Expense     15,000  

       Common Stock          15,000

 

 

Legal Expense     15,000  

       Common Stock          8,000

       Paid-in Capital in Excess of Par - Common        7,000

 

 

Legal Expense     14,400  

       Common Stock          8,000

       Paid-in Capital in Excess of Par - Common        6,400
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