Question

Sudoku Company issues 24,000 shares of $9 par value common stock in exchange for land and a building. The land is valued at $227,000 and the building at $369,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Answer 1

Step-by-step explanation:

The journal entry is shown below:

Land Dr $227,000

Building Dr $369,000

To Common Stock $216,000 (24,000 shares × $9)

To Additional paid in capital in excess of par value - Common stock $280,000

(Being the issuance of the stock in exchange for the land and the building is recorded)