Help Save & tait Quiz A corporation issued 5,000 shares of $10 par value common
ID: 2605639 • Letter: H
Question
Help Save & tait Quiz A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value exchange is of $70,000. The entry to record this Mult ple Choice $20.000 Debt Land $70,000 credit Common Stock $50,000, credt Poid In Capital in Excess of Par Vielue, Common Stock Debit Land S70.000 credit Common Stock $70.000 Debit Land $50,000, credit Common Stock $50,000 cedit Land $70.000 Debt Common Stock $50.000, debit Pidn Capital n Excess of Par Value, Common Stock $20,000 Debit Common Stock $70,000 credit Land $70.000 Pre 3of10 Next > MacBook Air 1W 20 pExplanation / Answer
Debit Land $70,000 Credit Common Stock $50,000
Credit paid in Capital in excess of par value Common stock $20,000
Explanation: Land value debited due to asset gained.Common Stock Credited due to issue of shares
The excess value should be shown as liability side of balance sheet hence credited.
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