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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 5. Lawyer a
S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an agreement was reached whereby E. Corp. would pay 5. Lawyer a legal fee of approximately $20,000 by issuing 10,000 shares of its common stock (par 51). 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: Select one: OA. Legal Expense OB. Legal Expense 18,000 Common Stock 18,000 20,000 Common Stock 20,000 OC. Legal Expense Common Stock 20,000 10,000 Paid-in Capital in Excess of Par Common 10,000 OD. Legal Expense 18,000 Common Stock 10,000 Paid-in Capital in Excess of Par Common 8,000
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