S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an agreement was reached whereby E. Corp. would pay S. Lawyer a legal fee of approximately $15,000 by issuing 8,000 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 $1.80 per share. Given this information, the best journal entry for E. Corp. to record for this transaction isa. Legal Expense 14,400Common Stock 14,400b. Legal Expense 15,000Common Stock 15,000c. Legal Expense 15,000Common Stock 8,000Paid-in Capital in Excess of Par - Common 7,000d. Legal Expense 14,400Common Stock 8,000Paid-in Capital in Excess of Par - Common 6,400
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