A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000.The entry to record this transaction would include:
A)A debit to Common Stock for $12,000.
B)A debit to Land for $12,000.
C)A credit to Land for $12,000.
D)A credit to Paid-in Capital in Excess of Par Value,Common Stock for $72,000.
E)A credit to Common Stock for $84,000.

Question

Quizplus · Accepted Answer

The entry would include a credit to Common Stock for the par value ($12,000) and a credit to Paid-in Capital in Excess of Par Value, Common Stock for the excess over par value ($72,000).

A Corporation Issued 6,000 Shares of Its $2 Par Value