Badger Corporation Issued 9000 Shares of Its $5 Par Value

question 150

Multiple Choice

Badger Corporation issued 9000 shares of its $5 par value common stock in payment for attorney services billed at $108,000. Badger Corporation's stock has been actively trading at $12 per share. The journal entry for this transaction would include a:

• A)debit to Legal Expense $45,000.
• B)debit to Legal Expense $108,000.
• C)credit to Common Stock $63,000.
• D)credit to Paid-in Capital in Excess of Par-Common $108,000.

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Definitions:

Soft Exoskeleton

A flexible external covering or support structure found in some organisms, providing protection and structural support while allowing movement.

Earthworm

A type of invertebrate animal known for its role in aerating soil and breaking down organic material into fertile humus.

Clitellum

A thickened, glandular section of the body found in earthworms and some other annelids, crucial for reproduction.

Fertilization

Fusion of sperm and egg nuclei, producing a zygote that develops into a new individual.