Fielder Company obtained by issuing 2,000 shares of its $10 par value common stock. The land was recently appraised at $85,000. The Common Stock is actively traded at $40 per share. Prepare the journal entry to record the acquisition of land.

Land 85,000 debit

Common Stock 20,000 credit

Additional paid-in 65,000 credit

--to record acquisition of land--

Explanation:

We will enter the land for his appraised value of 85,000 dollars

the difference between this and the face value of the stock issued will be considered Additional paid-in Common stock

2,000 shares x $10 each = 20,000

85,000 - 20,000 = 65,000 adidtional paid.-in

we debit the asset acquire and credit the equity accounts.