Multiple Choice so 1 , 2, 3, or 4

A start up company had legal services performed for it. The company agreed to pay the legal fee by issuing 3,000 shares of its common stock (par value $1) to the attorney. The company's stock trades on a daily basis and the market price of the stock on the day the debt was settled is $9.00 per share. The journal entry to record this transaction is: 1. Dr Organization Expense 24,000 Cr Common Stock 2. Dr Organization Expense 27,000 Cr Common Stock 27,000 3. Dr Organization Expense 24,000 Cr Common Stock . Cr Paidin Capital 4. Dr Organization Expense 27,000 Cr Common Stock Cr Paid-in Capital