Answer:
Building a/c-------Dr $170000
Common stock a/c-------Cr $144000
Paid-in capital in excess of par value a/c------ Cr $26000
Explanation:
Given: Share issued= 36000
Price per share= $4 par value.
Building market value= $170000.
Finding the value of common stock.
Value of common stock= [tex]Number\ of\ share\ issued\times par\ value\ of\ common\ stock[/tex]
∴ Value of common stock= [tex]36000\times 4= \$ 144000[/tex]
Excess of paid in capital with exchange of common stock= [tex]Building\ market\ value - value\ of\ common\ stock[/tex]
∴ Excess of paid in capital with exchange of common stock= [tex]\$ 170000-\$ 144000= \$ 26000[/tex]
