A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:

Question

Business

Sonia Gould

2 March, 10:35

A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:

+4

Answers (1)

Know the Answer?

Beanpole · Answer 1

A debit to Land for $12,000

Explanation:

The entry to record in this transaction include a debit to Land for $12,000

Particulars Debit Credit

Land $84,000

Common stock $12,000

(6,000 * $2)

Paid in capital in excess $72,000

of par, common stock