H Tillman Performed Legal Services for J $\begin{array}{llr} \text { Legal Expense} &4,500\\ \text {Common Stock } &&4,500\\\end{array}$

H. Tillman performed legal services for J. Laney. Due to a cash shortage an agreement was reached whereby J. Laney. would pay H. Tillman a legal fee of approximately $4000 by issuing 1000 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $4.50 per share. Given this information the journal entry for J. Laney. to record this transaction is: a.
$\begin{array}{llr} \text { Legal Expense} &4,500\\ \text {Common Stock } &&4,500\\\end{array}$

b.
$\begin{array}{llr} \text {Legal Expense } &4,000\\ \text { Common Stock } &&4,000\\\end{array}$

c.
$\begin{array}{llr} \text { Legal Expense} &4,000\\ \text {Common Stock } &&1,000\\ \text { Paid-in Capital in Excess of Par - Common } &&3,000\end{array}$

d.
$\begin{array}{llr} \text {Legal Expense } &4,500\\ \text { Common Stock } &&1,000\\ \text {Paid-in Capital in Excess of \( \mathrm{Par} \) - Common } &&3,500\end{array}$