K. Gary, Attorney at Law performed legal services for D. Corp. Due to a cash shortage, an agreement was reached whereby D. Corp. would compensate K. Gary for a legal fee of approximately $21200 by issuing 8500 shares of its common stock (par $1.00). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $2.40 per share. Given this information, the best journal entry for D. Corp. to record for this transaction is Legal Expense Common Stock Paid-in Capital in Excess of Par - Common Legal Expense Common Stock Paid-in Capital in Excess of Par - Common Legal Expense Common Stock Legal Expense Common Stock 21200 20400 21200 20400 8500 13808 8500 11900 21200 20400

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K. Gary, Attorney at Law performed legal services for D. Corp. Due to a cash shortage, an agreement was reached whereby D. Corp. would compensate K. Gary for a legal fee of approximately $21200 by issuing 8500 shares of its common stock (par $1.00). The stock .trades on a daily basis and the market price of the stock on the day the debt was settled is $2.40 per share. Given this information, the best journal entry for D. Corp. to record for this transaction is Legal Expense Common Stock Paid-in Capital in Excess of Par - Common Legal Expense Common Stock Paid-in Capital in Excess of Par - Common Legal Expense Common Stock Legal Expense Common Stock 21200 20400 21200 20400 8500 13808 8500 11900 21200 20400 K. Gary, Attorney at Law performed legal services for D. Corp. Due to a cash shortage, an agreement was reached whereby D. Corp. would compensate K. Gary for a legal fee of approximately $21200 by issuing 8500 shares of its common stock (par $1.00). The stock .trades on a daily basis and the market price of the stock on the day the debt was settled is $2.40 per share. Given this information, the best journal entry for D. Corp. to record for this transaction is Legal Expense Common Stock Paid-in Capital in Excess of Par - Common Legal Expense Common Stock Paid-in Capital in Excess of Par - Common Legal Expense Common Stock Legal Expense Common Stock 21200 20400 21200 20400 8500 13808 8500 11900 21200 20400