S Lamar Performed Legal Services for E $\begin{array}{lll}\text { Legal Expense }&12,000 \\\text { Common Stock }&12,000\end{array}$

S. Lamar performed legal services for E. Garr. Due to a cash shortage, an agreement was reached whereby E. Garr. would pay S. Lamar a legal fee of approximately $12,000 by issuing 3,000 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 E. Garr. to record this transaction is: a.
$\begin{array}{lll}\text { Legal Expense }&12,000 \\\text { Common Stock }&12,000\end{array}$

b.
$\begin{array}{lll}\text { Legal Expense } & 13,500 & \\\quad \text { Common Stock } & 13,500\end{array}$
c.
$\begin{array}{lrl}\text { Legal Expense } & 12,000 & \\\text { Common Stock } & & 3,000 \\\text { Paid-in Capital in Excess of Par - Common } && 9,000\end{array}$
d.
$\begin{array}{lr}\text { Legal Expense } & 13,500 \\\quad \text { Common Stock } & 3,000 \\\text { Paid-in Capital in Excess of Par - Common } & 10,500\end{array}$