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edit to Additional Paid in Capital $40,000. bit to Legal Expense $40,000. ebit to Legal Expense $35.000.

edit to Additional Paid in Capital $40,000. bit to Legal Expense $40,000. ebit to Legal Expense $35.000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Badger Corporation issued 5000 shares of its $5 par value common stock in payment for attorney services billed at $40,000. Badger Corporation's stock has been actively trading at $7 per share. The journal entry for this transaction would include a: Ocredit to Additional Paid in Capital $40,000. Odebit to Legal Expense $40,000. Odebit to Legal Expense $35.000. Ocredit to Common Stock $55,000. None of the above.
Transcribed Image Text:Badger Corporation issued 5000 shares of its $5 par value common stock in payment for attorney services billed at $40,000. Badger Corporation's stock has been actively trading at $7 per share. The journal entry for this transaction would include a: Ocredit to Additional Paid in Capital $40,000. Odebit to Legal Expense $40,000. Odebit to Legal Expense $35.000. Ocredit to Common Stock $55,000. None of the above.
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