Answer:
Debit Land for $230,000
Debit Building for $372,000
Credit Common Stock (w.1) for $136,000
Credit Paid in capital in excess of per value (w.2) for $466,000
Explanation:
The journal entry will look as follows:
<u>Account Name Dr ($) Cr ($) </u>
Land 230,000
Building 372,000
Common Stock (w.1) 136,000
Paid in capital in excess of per value (w.2) 466,000
<u><em>(To record issuance of stock in exchange for the land and building.) </em></u>
Workings:
w.1: Common stock = Number of shares issued * Price per share = 17,000 * $8 = $136,000
w.2: Paid in capital in excess of per value = Value of land + Value of building - Common stock = $230,000 + $372,000 - $136,000 = $466,000
