Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited. Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock. To Record: the stock issuance of C Corporation.

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Chapter 13, Problem 13.5SE

To determine

Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited.

Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock.

To Record: the stock issuance of C Corporation.

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