On May 31, 2011, Julienne Corp. exchanged 20,000 shares of its $1 par common stock for the

Question:

On May 31, 2011, Julienne Corp. exchanged 20,000 shares of its $1 par common stock for the following assets:

(a) A trademark valued at $183,000.

(b) A building, including land, valued at $732,000 (20% of the value is for the land).

(c) A franchise right. No estimate of the value is available at time of exchange. Julienne Corp. stock is selling at $50 per share on the date of the exchange. Give the entries to record the exchange on Julienne’s books.

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...