Badger Corporation Issued 5000 Shares of Its $5 Par Value

question 136

Multiple Choice

Badger Corporation issued 5000 shares of its $5 par value common stock in payment for attorney services billed at $40,000.Badger Corporation's stock has been actively trading at $8 per share.The journal entry for this transaction would include a:

• A)debit to Legal Expense $25,000.
• B)debit to Legal Expense $40,000.
• C)credit to Common Stock $15,000.
• D)credit to Paid-in Capital in Excess of Par-Common $40,000.

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Definitions:

Operational Ambiguity

The uncertainty or lack of clarity in the operational aspects of a business, which can arise from complex or unclear procedures, objectives, or roles.

Mutually Exclusive Projects

Situations where the acceptance of one project results in the rejection of another project due to constraints such as budget or resources.

Economic Resource

Assets or inputs that can be used in the production or offering of goods and services that have economic value.