5 On February 1, 2018, the Xilon Corporation issued 48,000 shares of its nopar c

Question

5 On February 1, 2018, the Xilon Corporation issued 48,000 shares of its nopar common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $17 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2018, at a cost of $6,900,000 Xilon paid $4,450,000 in cash and the remainder was paid by the city of Monrovia. 0.85 points Required: 1. Prepare the journal entries to record the acquisition of the land and the building. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) eBook View transaction list Ask Journal entry worksheet Print 2 Record the acquisition of land in exchange for common stock. References Note: Enter debits before credits. Date General Journal Debit Credit February 01, 2018

Explanation / Answer

February 01, 2018 Land 816000 =48000*17      Common stock 816000 November 02, 2018 Building 6900000       Cash 4450000        Revenue - donation of asset 2450000

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