Question

arasota Company obtained land by issuing 3,380 shares of its $12 par value common stock. The land was recently appraised at $146,440. The common stock is actively traded at $42 per share. Prepare the journal entry to record the acquisition of the land. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

Dr Land $146,440

Cr Common stock (3,380 shares×$12 par value) $40,560

Cr Paid in Capital in excess of Par common stock $105,880

Step-by-step explanation:

Arasota Company Journal entry

Dr Land $146,440

Cr Common stock (3,380 shares×$12 par value) $40,560

Cr Paid in Capital in excess of Par common stock $105,880