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Land Is Acquired by Issuing 500 Common Shares

Question 51

Multiple Choice

Land is acquired by issuing 500 common shares.The land has a current market value of $12,000.There is no market value for the common shares available.The journal entry requires a:


A) debit to Cash for $12,000
B) debit to Common Shares for $12,000
C) credit to Retained Earnings for $12,000
D) credit to Common Shares for $12,000

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