MJH Company issued 500 shares of stock with a par value of $10 per share for land valued at $20,000. The entry to journalize this would include: a credit to paid in capital in excess of par of $15,000 All of the above a debit to land of $20,000 a credit to common stock of $5000

MJH Company issued 500 shares of stock with a par value of $10 per share for land valued at $20,000. The entry to journalize this would include: a credit to paid in capital in excess of par of $15,000 All of the above a debit to land of $20,000 a credit to common stock of $5000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 10MC: A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

MJH Company issued 500 shares of stock with a par value of $10 per share for land valued at $20,000. The entry to journalize this would include:

		a credit to paid in capital in excess of par of $15,000
		All of the above
		a debit to land of $20,000
		a credit to common stock of $5000

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