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: Organization Expense Common Stock Organization Expense 13,500 13,500 12,000 Common Stock 12,000 Organization Expense 13,500 Common Stock Paid-in Capital in Excess of ParCommon 3,000 10,500 Organization Expense 12,000 3,000 9,000 Common Stock Paid-in Capital in Excess of ParCommon

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: Organization Expense Common Stock Organization Expense 13,500 13,500 12,000 Common Stock 12,000 Organization Expense 13,500 Common Stock Paid-in Capital in Excess of ParCommon 3,000 10,500 Organization Expense 12,000 3,000 9,000 Common Stock Paid-in Capital in Excess of ParCommon

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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In order to encourage employee ownership of the company’s $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 15% discount. During March, employees purchased 50,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share. Required: Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan.
I need help setting these up on a general ledger and I'm not understanding how. Would someone be able to help me do this?
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