Brief Exercise 10-7 Concord Company obtained land by issuing 2,100 shares of its

Question

Brief Exercise 10-7

Concord Company obtained land by issuing 2,100 shares of its $13 par value common stock. The land was recently appraised at $94,570. The common stock is actively traded at $43 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.)

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

Explanation / Answer

Journal entry

Date

Particulars

Debit

Credit

Land (2,100 stock *$43)

$90,300

Common stock @ $13 par value (2,100*13)

$27,300

Paid-in capital in excess of par value, common stock (bal fig) ( $90,300-$27,300)

$63,000

(Being stock issued in exchange of Land recorded)

Journal entry

Date

Particulars

Debit

Credit

Land (2,100 stock *$43)

$90,300

Common stock @ $13 par value (2,100*13)

$27,300

Paid-in capital in excess of par value, common stock (bal fig) ( $90,300-$27,300)

$63,000

(Being stock issued in exchange of Land recorded)

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