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A corporation issued 6,800 shares of $10 par value common stock in exchange for some land...

A corporation issued 6,800 shares of $10 par value common stock in exchange for some land with a market value of $106,000. The entry to record this exchange is:

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Answer #1
Account titles and explanations Debit ($) Credit ($)
Land A/c            1,06,000
    To Common Stock A/c [6,800 Shares x $10.00 per share]               68,000
    To Paid-In Capital in Excess of Par Value, Common Stock A/c [$106,000 - 68,000]               38,000
[The journal entry to record the exchange]
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