Question

Connect Homework - Chapter 11 Saved Help Save & Exit Submit Exercise 11-5 Stock issuance for noncash assets LO P1 Sudoku Company issues 29,000 shares of $6 par value common stock in exchange for land and a building. The land is valued at $227,000 and the building at $360,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. points View transaction list eBook Print Journal entry worksheet References Record the issue of 29,000 shares of $6 par value common stock in exchange for land valued at $227,000 and a building valued at $360,000. Note: Enter debits before credits. Transaction General Journal Debit Credit

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Answer 1

Answer Debit Credit Transaction General Journal $227,000 Land 1 Building $360,000 Common Stock ($29,000 x 6) Paid-in Capital in Excess of Par Value Common Stock $174,000 $413,000 [($227,000+$360, 000) - $174,000] (To record the issue of common stock in exchange of land and building)