S. Lamar performed legal services for E. Garr. Due to a cash shortage, an agreement was reached whereby E. Garr. would pay S. Lamar a legal fee of approximately $12,000 by issuing 3,000 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 $4.50 per share. Given this information, the journal entry for E. Garr. to record this transaction is:

Legal Expense

12,000

Common Stock

12,000

Legal Expense

3,000

Common Stock

3,000

Legal Expense

12,000

	Common Stock		3,000
	Paid in Capital in Excess of Par--Common		9,000

Legal Expense

13,500

	Common Stock		3,000
	Paid in Capital in Excess of Par--Common		10,500