Farmers Incorporated issued 6,000 shares of its $10 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 debit to Common Stock for $60,000 B. A debit to Land for $60,000 A credit to Land for $60,000

Farmers Incorporated issued 6,000 shares of its $10 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 debit to Common Stock for $60,000 B. A debit to Land for $60,000 A credit to Land for $60,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 7Q: A corporation issues 6,000 shares of $1 par value stock for a parcel of land valued at $12,000....

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

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Farmers Incorporated issued 6,000 shares of its $10 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 debit to Common Stock for $60,000 B. A debit to Land for $60,000
A credit to Land for $60,000

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