Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $20 per share and the building’s book value on the books of the seller was $211,000. Which of the following journal entries is correct for Smith Company when Smith issues 11,100 shares of $10 par value common stock and pays $21,100 cash in exchange for the building? Please see picture attached
Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $20 per share and the building’s book value on the books of the seller was $211,000. Which of the following journal entries is correct for Smith Company when Smith issues 11,100 shares of $10 par value common stock and pays $21,100 cash in exchange for the building? Please see picture attached
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $20 per share and the building’s book value on the books of the seller was $211,000.
Which of the following journal entries is correct for Smith Company when Smith issues 11,100 shares of $10 par value common stock and pays $21,100 cash in exchange for the building?
Please see picture attached.
Transcribed Image Text:Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $20 per
share and the building's book value on the books of the seller was $211,000.
Which of the following journal entries is correct for Smith Company when Smith issues 11,100 shares of $10 par value common
stock and pays $21,100 cash in exchange for the building?
Multiple Choice
Building
Common stock
243,100
243,100
Building
243,100
Cash
21,100
Common stock
222,000
Building
Cash
132,100
21,100
Common stock
111,000
Building
243,100
Cash
21,100
Common stock
111, еее
Additional paid-in
111,e00
capital
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