Question

A corporation issued 6,200 shares of $10 par value common stock in exchange for some land with a market value of $94,000. The entry to record this exchange is:

Answer 1

Debit Land $94,000; credit Common Stock $62,000; credit Paid-In Capital in Excess of Par Value, Common Stock $32,000

Step-by-step explanation:

Preparation of what The entry to record this exchange is:

Debit Land $94,000

Credit Common Stock $62,000

(6,200*$10)

Credit Paid-In Capital in Excess of Par Value, Common Stock $32,000

($94,000-$62,000)

(To record exchange)