Question

Issuing Stock for Assets Other Than Cash On April 5, Fenning Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 30,000 shares of $80 par common stock valued at $112 per share. Journalize the entry to record the transaction. For a compound transaction, if an amount box does not require an entry, leave it blank.

Answer 1

April 5

Dr Land 3,360,000

Cr Common stock 2,400,000

Cr Paid in capital in excess of par Common stock 960,000

Step-by-step explanation:

Prepare of the journal entry to record the transaction.

April 5

Dr Land 3,360,000

(30,000 shares x $112)

Cr Common stock 2,400,000

(30,000 shares x $80)

Cr Paid in capital in excess of par Common stock 960,000

[30,000 shares x ($112-$80)]

(30,000 shares x $32)