Assume that 2,000 shares of common stock with a par value of $12 and a market price
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Question:
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.
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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