(1) A eorporation has the following account balances: Common Stock, $1 par value, $80,000; Pald-In Capital in Excess of Par Value, $2,700,000. Based on this information, the a. legal capital is $2,780,000. Chapter 11-Reporting and Analyzing Stockholders' Equity b. number of shares issued is 80,000. e. number of shares outstanding is 2,780,000. d. (2) 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 $20,000 by issuing price of the stock on the day the debt was settled is $2.40 per share. Given this information, the best journal entry for E. Corp. to record for this transaction is average price per share issued is $3.48. 8,000 shares of its common stock (par S1). The stock trades on a daily basis and the market a. Legal Expense b. Legal Expense c. Legal Expense 19,200 20,000 20,000 Common Stock 19,200 Common Stock 20,000 Common Stock Paid-in Capital in Excess of Par- Common 8,000 13,000 d. Legal Expense 19,200 Common Stock Paid-in Capital in Excess of Par-Common 8,000 11.200 (3) A corporation purchases 30,000 shares of its own $10 par common stock for $25 per share, recording it at cost. What will be the effect on total stockholders' equity? Increase by $300,000. Decrease by $750,000. Increase by $750,000. Decrease by $300,000. a. b. c. d. (4) Nice Corporation issues 40,000 shares of S100 par value preferred stock for cash at $110 per share. The entry to record the transaction will consist of a debit to Cash for $4,400,000 and a credit or eredits to a. Preferred Stock for $4,400,000. Preferred Stock for $4,000,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $400,000. b. c. Preferred Stock for $4,000,000 and Retained Earnings for $300,000. d. Paid-in Capital from Preferred Stock for $4,400,000