please answer and explain Sudoku Company issues 25,000 shares of $9 par value co

Question

please answer and explain

Sudoku Company issues 25,000 shares of $9 par value common stock in exchange for land and a building. The land is valued at $237,000 and the building at $363,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building View transaction list Journal entry worksheet Record the issue of 25,000 shares of $9 par value common stock in exchange for land valued at $237,000 and a building valued at $363,000 Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

1 Land 237000 Building 363000 Common stock, $9 par value 225000 Paid in capital in excess of par value, common stock (237000+363000)-225000 375000 Here Land and building are building are taken in exchange for sudoku company shares where the price of land and building are 600000 (237000+363000) , the value of common stock is 225000 (25000*9) therefore the other party is paying sudoku company inexcess of par value of shares i.e 375000

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