Question

Coronado Company obtained land by issuing 3,370 shares of its $20 par value common stock. The land was recently appraised at $172,760. The common stock is actively traded at $50 per share.
Prepare the journal entry to record the acquisition of the land.

Answer 1

Answer:

Dr Land $168,500

Cr Common stock $67,400

Cr Paid in capital in excess of par common stock $101,100

Explanation:

Preparation the journal entry to record the acquisition of the land.

Dr Land $168,500

(3,370shares *$50per share)

Cr Common stock $67,400

(3,370 shares*$20par value)

Cr Paid in capital in excess of par common stock $101,100

($168,500-$67,400)

(Being to record the acquisition of the land)