Answer:
A
Dr Cash $209,700
Cr Paid-In-Capital in excess of par-common stock $187,200
Cr Common Stock $22,500
B. Dr Land $53,900
Cr Common Stock $5,500
Cr Paid-In-Capital in excess of par-common stock $48,400
C. Dr Treasury Stock $24,380
Cr Cash $24,380
Explanation:
A. Preparation of the journal entry to record item1
Dr Cash (4,500*$48-6,300) $209,700
Cr Paid-In-Capital in excess of par-common stock $187,200
($209,700-$22,500)
Cr Common Stock $22,500
(4,500*$5)
(Being to record common stock issued)
B. Preparation of the journal entry to record item 2
Dr Land (1,100*$49) $53,900
Cr Common Stock $5,500
(1,100*$5)
Cr Paid-In-Capital in excess of par-common stock $48,400
($53,900-$5,500)
(Being to record land puchased in exchange for common stock)
C. Preparation of the journal entry to record item 3 using the cost method
Dr Treasury Stock $24,380
(530*$46)
Cr Cash $24,380
(Being to record purchase of treasury stock)
