Question

Prepare the journal entry to record Autumn Company's issuance of 71,000 shares of no-par value common stock. The shares are sold for 34 cash per share and are exchanged for land valued at2,414,000.

Answer 1

The journal entry to record Autumn Company's issuance of 71,000 shares of no-par value common stock would be: Debit: Cash, $2,414,000; Credit: Common Stock, $2,414,000; Credit: Additional Paid-in Capital, $0.

Step-by-step explanation:

The journal entry to record Autumn Company's issuance of 71,000 shares of no-par value common stock would be as follows:

1. Debit: Cash, $2,414,000
2. Credit: Common Stock, $2,414,000
3. Credit: Additional Paid-in Capital, $0

Explanation: The company is issuing 71,000 shares of stock for $34 cash per share and in exchange for land valued at $2,414,000. The cash received is debited, and the common stock is credited for the total value of the shares ($34 x 71,000 = $2,414,000). Since the stock is issued at no-par value, no additional paid-in capital is recorded.