TLR Productions hires a consultant for a new project, and issues common stock with a par value of $700 in exchange for consulting services received. The common stock has a fair value of $2,800. What is the journal entry required to record this transaction?
A)
Cash
2,800
Consulting Fees
2,800
B)
Cash
2,800
Common Stock
2,100
Addl. Paid-in-Capital in Excess of Par—Common
700
C)
Cash
2,800
Common Stock
700
Addl. Paid-in-Capital in Excess of Par—Common
2,100
D)
Consulting Fees Expense
2,800
Common Stock
700
Addl. Paid-in-Capital in Excess of Par—Common
2,100
Answer: D
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