AAA Corp. issued 5,000 shares of $10 par value common stock to attorneys in payment of $70,000 services rendered on the same date. As a result of the transaction

1-None of these.

2-Total equity increases.

3-Total liability increases.

4-Total asset increases.

AAA Corp. issued 5,000 shares of $10 par value common stock to attorneys in payment of $70,000 services rendered on the same date. The journal entry?

1-Credit to Cash

2-Debit to Paid-in-Capital in Excess of Par

3-Debit to Common Stock

4-Debit to Expense