2 Exercise 134 Stock issuance for noncash assets LO P1 Sudok

2 Exercise 13-4 Stock issuance for noncash assets LO P1 Sudoku Company issues 27,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at and the building at $367000. Prepare the journal entry to record issuance of the sto?k in exchange for the land and building

Solution

Transaction General Journal Debit Credit 1 Land $233,000 Building $367,000 Common stock, $7 par value(27,000 shares x $7 par) $189,000 Paid-in capital in excess of par value, common stock $411,000