Question 21
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 21
Transcribed Image Text:06
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:
Multiple Choice
A debit to Land for $12,000.
A debit to Common Stock for $12,000.
A credit to Common Stock for $84,000.
A credit to Land for $12,000.
A credit to Paid-in Capital in Excess of Par Value, Common Stock for $72,000.
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