Question

sudoku company issues 32,000 shares of $6 par value common stock in exchange for land and a building. the land is valued at $239,000 and the building at $366,000. prepare the journal entry to record issuance of the stock in exchange for the land and building.
journal entry worksheet
record the issue of 32,000 shares of $6 par value common stock in exchange for land valued at $239,000 and a building valued at $366,000.
note: enter debits before credits.

Explanation:

Step1: Calculate the total value of land and building

The land is valued at \( \$239,000 \) and the building at \( \$366,000 \).
The total value \(=239000 + 366000=\$605,000\)

Step2: Calculate the par - value of the common stock

The company issues \( 32,000 \) shares of \( \$6 \) par - value common stock.
The par - value \(=32000\times6=\$192,000\)

Step3: Calculate the paid - in capital in excess of par

Paid - in capital in excess of par \(=\) Total value of assets received - Par - value of stock
\(=605000 - 192000=\$413,000\)

Step4: Record the journal entry

Debit Land \( \$239,000 \), debit Building \( \$366,000 \) (to record the assets received). Credit Common Stock \( \$192,000 \) (at par - value) and credit Paid - in Capital in Excess of Par - Common Stock \( \$413,000 \) (the amount in excess of par).

Answer:

Transaction	General Journal	Debit	Credit
	Building	\( 366000 \)
	Common Stock		\( 192000 \)
	Paid - in Capital in Excess of Par - Common Stock		\( 413000 \)