Question: Tulip Corporation issued 16 000 shares of its 1 par value

Tulip Corporation issued 16,000 shares of its $1 par value common stock in exchange for land that had a fair market value of $100,000. Prepare the journal entries necessary to record the issuance of the stock for the land under each of these conditions:
(1) The stock was selling for $7 per share on the day of the transaction;
(2) Management attempted to place a value on the common stock but could not do so.

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  • CreatedMarch 26, 2014
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