Question

Exercise 11-4 Stock issuance for noncash assets LO P1 Sudoku Company issues 31.000 shares of S9 par value common stock in exchange for land and a building. The land is valued at $225,000 and the building at $371,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building View transaction list Journal entry worksheet Record the issue of 31,000 shares of $9 par value common stock in exchange for land valued at $225,000 and a building valued at $371,000 Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

In the books of Sudoko Company

Transaction General Debit Credit

1 Land A/c Dr. 225,000

2. Building A/c Dr. 371,000

3. To Common Stock (31000 issue $ 9) 279,000

4 To Additional Paid in Capital 317,000

Total $ 596,000 $ 596,000

Narration:- Issued 31000 Stock of $ 9 par value in exchange of Land & Building

Note: Record the transaction at the Fair Market Value of the corporation is giving up (Stock)