Raton Company, in payment for services, issues 5,000 shares of common stock to persons organizing and promoting

Question:

Raton Company, in payment for services, issues 5,000 shares of common stock to persons organizing and promoting the company and another 20,000 shares in exchange for properties believed to have valuable mineral rights. The par value of the stock, $5 per share, is used in recording the consideration for the shares. Shortly after organization, the company decides to sell the properties and use the proceeds for another venture. The properties are sold for $265,000. What accounting issues are involved? How would you record the sale of properties and why?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...