Issuance of Stock for Noncash Assets On July 1, 2014, Jones Corporation, a new c

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Issuance of Stock for Noncash Assets On July 1, 2014, Jones Corporation, a new corporation, issued 50,000 shares of its common stock to finance a corporate headquarters building. The building has a fair market value of $1,500,000 and a book value of $800,000. Because Jones is a new corporation, it is not possible to establish a market value for its common stock. Hide 1. Prepare a journal entry to record the issuance of stock for the building, assuming the par value of the stock is $10 per share. If an amount box does not require an entry, leave it blank. 2014 Cash July 1 Common Stock Additional Paid-in Capital ssued 50,000 shares of $10 par value common stock for a building

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Debit Credit Building a/c 1,500,000 common stock 500,000 Additional paid in cap 1,000,000

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