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A corporation issued 5,600 shares of $10 par value common stock in exchange for some land with a market value of $82,000. The entry to record this exchange is:

User Jhibberd
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Answer:

The entry for the exchange is therefore;

Dr Land $82,000

Cr common stock $56,000

Cr Paid in capital in excess of par value common stock $26,000

Step-by-step explanation:

The land was gotten at a price of $82,000(its fair value)

Common stock issue = 5,600 shares x $10 par value common stock

= $56,000

Paid in capital in excess of par value common stock = $82,000 - $56,000

=$26,000

The entry for the exchange is therefore;

Dr Land $82,000

Cr common stock $56,000

Cr Paid in capital in excess of par value common stock $26,000

User Chasidishe
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