Ralston Company Is Authorized to Issue 10,000 Shares of 8 $\begin{array}{ll}\text { Legal Expense }&9,000 \\\text { Common Stock }& & 9,000 \\\end{array}$

Ralston Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Ralston issues 9,000 shares of common stock to pay its recent attorney's bill of $37,500 for legal services on a land access dispute, which of the following would be the journal entry for Ralston to record? a.
$\begin{array}{ll}\text { Legal Expense }&9,000 \\\text { Common Stock }& & 9,000 \\\end{array}$
b.
$\begin{array}{lll}\text { Legal Expense } & 37,500 & \\\quad \text { Common Stock } & & 37,500\end{array}$

c.
$\begin{array}{lr}\text { Legal Expense } & 37,500 \\\text { Common Stock } & &9,000 \\\text { Paid-in Capital in Excess of Stated Value - Common } && 28,500\end{array}$ d.
$\begin{array}{lr}\text { Legal Expense } & 37,500 \\\text { Common Stock } && 9,000 \\\text { Paid-in Capital in Excess of Par - Preferred } && 28,500\end{array}$