Lewelling Company issued 100,000 shares of its $1 par common stock to the Michael Morgan law firm

Question:

Lewelling Company issued 100,000 shares of its $1 par to the Michael Morgan law firm as compensation for 4,000 hours of legal services performed. Morgan's usual rate is $240 per hour. By what amount should Lewelling's paid-in capital—excess of par increase as a result of this transaction?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...