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Ralston Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Ralston issues 6,000 share

Ralston Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Ralston issues 6,000 shares of common stock to pay its recent attorney’s bill of $25,000 for legal services on a land access dispute, which of the following would be the journal entry for Ralston to record?


    
Legal Expense        25,000       
     Common Stock                6,000
     Paid-in Capital in Excess of Stated Value – Common                19,000
                

   
Legal Expense        25,000       
     Common Stock                6,000
     Paid-in Capital in Excess of Par – Preferred                19,000
                

   
Legal Expense          6,000       
     Common Stock                  6,000
                

   
Legal Expense        25,000       
     Common Stock                25,000
                                         


 MuhammadYousaf
quote
Paid-in Capital in Excess of Par – Preferred 19,000 Legal Expense 6,000 Common Stock 6,000 Legal Expense 2...(214 more words & 0 attachments).
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