Question

Sudoku Company issues 21,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $237,000 and the building at $368,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Answer 1

Answer and Explanation:

The journal entry to record issuance of the stock in exchange for the land and building is given below:

Land $237,000

Building $368,000

To Common stock, $8 par value $168,000

To Paid-in capital in excess of par value, common stock $437,000

(Being the issuance of the stock in exchange for the land and building is recorded)