Question

Jackson Company is a publicly held corporation whose $1 par value stock is actively traded at $64 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $200,000. When recording this transaction, Jackson Company will

A) debit Land for $200,000.

B) credit Common Stock for $192,000.

C) debit Land for $192,000.

D) credit Paid-In Capital in Excess of Par for $196,000.

Answer 1

C) debit Land for $192,000.

Step-by-step explanation:

Given that

Par value of stock = $1

Actively traded per share = $64

Number of shares issued = 3,000 shares

Acquired value of land = $200,000

By considering the above information, the calculation would be done as follows

Land value would be

= Number of shares issued × actively traded per share

= 3,000 shares × $64 per share

= $192,000