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

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 31P

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