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as a pa to Common Stock-$ to Gain on Sale of Co-

as a pa to Common Stock-$ to Gain on Sale of Co-

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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O'Malley, Inc. issued 80,000 shares of common stock in exchange for manufacturing equipment. The equipment has a fair value of $1,000,000. The stock has a par value of $0.01 per share. The journal entry to record this transaction includes a ______. - ○ credit to Common Stock—$0.01 Par Value for $1,000,000 - ○ credit to Gain on Sale of Common Stock for $1,080,000 - ○ debit to Cash for $9,992,000 - ○ credit to Paid-In Capital in Excess of Par—Common for $999,200
Transcribed Image Text:O'Malley, Inc. issued 80,000 shares of common stock in exchange for manufacturing equipment. The equipment has a fair value of $1,000,000. The stock has a par value of $0.01 per share. The journal entry to record this transaction includes a ______. - ○ credit to Common Stock—$0.01 Par Value for $1,000,000 - ○ credit to Gain on Sale of Common Stock for $1,080,000 - ○ debit to Cash for $9,992,000 - ○ credit to Paid-In Capital in Excess of Par—Common for $999,200
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