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On February 1, 2020, Sunland Corporation issued 2,800 shares of its $5 par value common stock for land worth $36,400. Prepare the February 1, 2020, journal entry.

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Step-by-step explanation:

The journal entry is as follows

On February 1, 2020

Land Dr $36,400

To Common Stock $14,000

To Paid- in capital in excess of par value - common stock $22,400

(Being the common stock is issued for land)

The computation is shown below:

For common stock

= 2,800 shares × $5 per share

= $14,000

And, the remaining balance is credited to the paid in capital in excess of par value i.e $22,400

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