On December 2, 2018, Eshares, Inc. purchases land. In payment for the land. Esha

Question

On December 2, 2018, Eshares, Inc. purchases land. In payment for the land. Eshares. Inc. issues 10,000 shares of common stock with $10 00 par value. The land has been appraised at a market value of $500.000. Which of the following is included in the journal entry to record this transaction? O A. debit Cash $500,000 O B. credit Common Stock-$10.00 Par Value for $100.000 and credit Paid-In Capital in Excess of Par-Common $400000 OC $1000 Par Value for S100 000 and debit Paid-In Capital in Excess of Par debit omm on Stock -Common $400,000 D· credit Common Stock--$10 00 Par Value for $500,000 Click to select your answer

Explanation / Answer

Solution: credit common stock - 10.00 par value for $100,000 and credit paid-in-capital in excess of par-common $400,000

Working:

Debit land 500,0000

Credit Common Stock-10 Par Value for $100,000 and

Credit Paid-In Capital in Excess of Par-Common $400,000

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