Sudoku Company issues 31,000 shares of $7 par value common stock in exchange for land and a building

Sudoku Company issues 31,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $239,000 and the building at $373,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Solutions

Expert Solution

A	1	Land	239,000
		Building	373,000
		Common stock, $7 par value		217,000
		Paid-in capital in excess of par value, common stock		395,000

Explanation

Common stock (31,000 shares × $7 per share) = $217,000
Paid-in capital in excess of par value, common stock ($239,000 + $373,000) – $217,000 = $395,000

Common stock (31,000 shares × $7 per share) = $217,000

Robert Otieno answered 2 years ago

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