A parcel of land was acquired by Macy Corporation by issuing 200,000 ordinary shares with P 28 par value per share. In case the Corporation decided to acquire the parcel of land through cash, they will be needing to pay P 8,000,000

1. At what amount should the land acquired be recorded?
Option A) 5,600,000
Option B) 8,000,000
Option C) 2,400,000
Option D) 13,600,000

2.At what amount should ordinary share capital be?
Option A) Credited to 5,600,000
Option B) Debited to 5,600,000
Option C) Debited to 8,000,000
Option D) Credited to 8,000,000

Answer rating: 100% (QA)

Date Account title and explanations Debit Credit Land P 8000000 8000000 Ordinary shares Additional ... View the full answer