Question

On April 10, a company acquired land in exchange for 2,500 shares of $23 par common stock with a current market price of $70. Required: Journalize this transaction

Answer 1

Answer:

Date           Details                                                             Debit               Credit

April 10,  Land                                                                 $175,000

               Common Stock                                                                       $57,500

               Paid-In Capital in excess of Par - Common                        $117,500

               Stock

Step-by-step explanation:

Land = 2,500 * 70

= $175,000

Common Stock = 2,500 * 23

= $57,500

Paid-In Capital = 175,000 - 57,500

= $117,500