Wolverine Corporation Issued 5,000 Shares of Its $5 Par Value

question 67

Multiple Choice

Wolverine Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney services of $40,000. Wolverine stock has been actively trading at $20 per share. This transaction would include a:

• A) debit to Legal Expense $100,000.
• B) debit to Legal Expense $40,000.
• C) credit to Common Stock $100,000.
• D) credit to Common Stock $40,000

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Definitions:

Utility Bills

Monthly invoices sent to consumers for the consumption of public services such as electricity, water, natural gas, and sewage services.

Minimum Payment

The smallest amount of a credit card bill that must be paid each month to avoid defaulting on the debt.

Finance Fee

A charge associated with the management or processing of financial transactions.

Debit Card

A payment card that deducts money directly from a consumer's checking account to pay for a purchase.