Question

Prepare the journal entry to record Autumn Company’s issuance of 78,000 shares of no-par value common stock assuming the shares:

a. Sell for $32 cash per share.
b. Are exchanged for land valued at $2,496,000.

Answer 1

A Journal entry was recorded for Autumn Company which is given below.

Step-by-step explanation:

Solution

(A) Journal Entry:

No Account and Explanation Debit Credit

a Cash (78000*32) 2496000

Common Stock 2496000

(To record issued common stock)

(B) Journal Entry:

No Account and Explanation Debit Credit

b Land 2496000

Common Stock 2496000

(To record issued common stock)