TLR Productions Hires a Consultant for a New Project, and Issues

question 87

Multiple Choice

TLR Productions hires a consultant for a new project, and issues common stock with a par value of $900 in exchange for consulting services received. The common stock has a fair value of $3,300. What is the journal entry required to record this transaction?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 3,300 & \\
• \hline \text { Consulting Fees } & & 3,300 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 3,300 & \\
• \hline \text { Common Stock } & & 2,400 \\
• \hline \text { Addl. Paid-in Capital in Excess of Par-Common } & & 900 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 3,300 & \\
• \hline \text { Common Stock } & & 900 \\
• \hline \text { Addl. Paid-in Capital in Excess of Par-Common } & & 2,400 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Consulting Fees Expense } & 3,300 & \\
• \hline \text { Common Stock } & & 900 \\
• \hline \text { Addl. Paid-in Capital in Excess of Par-Common } & & 2,400 \\
• \hline
• \end{array}\]

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