H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H. Tillman a legal fee of approximately $4,000 by issuing 1,000 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 J. Laney. to record this transaction is: Legal Expense 4,500 Common Stock 1,000 Paid-in Capital in Excess of Par - Common 3,500 Legal Expense 4,500 Common Stock 4,500 Legal Expense 4,000 Common Stock 4,000 Legal Expense 4,000 Common Stock 1,000 Paid-in Capital in Excess of Par - Common 3,000
H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H. Tillman a legal fee of approximately $4,000 by issuing 1,000 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
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