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WikWok hires a consultant for a new project, and issues common stock with a par value of $100 in exchange for consulting services received. The common stock has an observable fair value of $420 The consultant ordinarily charges $3600 for the services received. What is the journal entry required to record this transaction? Dr. Cash-- $4200 Cr. Common stock at par -- $100 Cr. Additional paid-in capital -- $3500 Dr. Consulting fee expense -- $3600 Dr. Consulting fee expense -- $4200 Cr. Additional paid-in capital --$4100

WikWok hires a consultant for a new project, and issues common stock with a par value of $100 in exchange for consulting services received. The common stock has an observable fair value of $420 The consultant ordinarily charges $3600 for the services received. What is the journal entry required to record this transaction? Dr. Cash-- $4200 Cr. Common stock at par -- $100 Cr. Additional paid-in capital -- $3500 Dr. Consulting fee expense -- $3600 Dr. Consulting fee expense -- $4200 Cr. Additional paid-in capital --$4100

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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WikWok hires a consultant for a new project, and issues common stock with a par value of $100 in exchange for consulting services received. The common stock has an observable fair value of $4200. The consultant ordinarily charges $3600 for the services received. What is the journal entry required to record this transaction? Dr. Cash -- $4200 Cr. Common stock at par -- $100 Cr. Additional paid-in capital -- $3500 Dr. Consulting fee expense -- $3600 Dr. Consulting fee expense -- $4200 Cr. Additional paid-in capital --$4100
Transcribed Image Text:WikWok hires a consultant for a new project, and issues common stock with a par value of $100 in exchange for consulting services received. The common stock has an observable fair value of $4200. The consultant ordinarily charges $3600 for the services received. What is the journal entry required to record this transaction? Dr. Cash -- $4200 Cr. Common stock at par -- $100 Cr. Additional paid-in capital -- $3500 Dr. Consulting fee expense -- $3600 Dr. Consulting fee expense -- $4200 Cr. Additional paid-in capital --$4100
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