Assume that 2,000 shares of common stock with a par
value of $12 and a market price of $16 per share are issued in
exchange for land with a fair market value of $32,000.
a. Prepare the journal entry to record the transaction.
b. If the land's appraised fair market value were $33,000, what
would be the correct entry to record
the transaction?
c. Prepare the necessary journal entry, assuming the same facts as
in (b), except that the stock is not actively traded and therefore
its market price is unknown.
d. Prepare the necessary journal entry, assuming the stock has a
par value of $10 and a market price of $15 per share.
Get Answers For Free
Most questions answered within 1 hours.