Help Save tait Quiz A corporation issued 5000 shares of 10

Help Save & tait Quiz A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value exchange is of $70,000. The entry to record this Mult ple Choice $20.000 Debt Land $70,000 credit Common Stock $50,000, credt Poid In Capital in Excess of Par Vielue, Common Stock Debit Land S70.000 credit Common Stock $70.000 Debit Land $50,000, credit Common Stock $50,000 cedit Land $70.000 Debt Common Stock $50.000, debit Pidn Capital n Excess of Par Value, Common Stock $20,000 Debit Common Stock $70,000 credit Land $70.000 Pre 3of10 Next > MacBook Air 1W 20 p

Solution

Debit Land $70,000 Credit Common Stock $50,000

Credit paid in Capital in excess of par value Common stock $20,000

Explanation: Land value debited due to asset gained.Common Stock Credited due to issue of shares

The excess value should be shown as liability side of balance sheet hence credited.