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7 May, 20:08

Prepare the journal entry to record Autumn Company's issuance of 74,000 shares of no-par value common stock assuming the shares: Sell for $28 cash per share. Are exchanged for land valued at $2,072,000.

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  1. 7 May, 21:19
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    Journal entry:

    Debit land Account with $2,072,000

    Credit common stock Account with $2,072,000

    (Being sale of 74,000 shares in exchange for land valued at the selling price of shares)

    Explanation:

    Autumn Company

    74,000 shares at $28 = $2,072,000

    Instead of being paid cash for the sale of shares, land was the consideration for the sale

    Journal entry:

    Debit land Account with $2,072,000

    Credit common stock Account with $2,072,000

    (Being sale of 74,000 shares in exchange for land valued at the selling price of shares)
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