Question

Sudoku Company issues 34,000 shares of $6 par value common stock in exchange for land and a building. The land is valued at $227,000 and the building at $374,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Answer 1

Answer and Explanation:

The journal entry is shown below:

Land $227,000

Building $374,000

To Common stock (34,000 × $6) $204,000

To Paid-in capital in excess of par value, common stock $397,000

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

The above journal entry should be passed