Dailey Company is a publicly held corporation whose $1 par value ordinary shares are actively traded at $22 per share. The company issued 3,000 shares to acquire land recently advertised at $82,000. When recording this transaction, Dailey Company will

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When a company issues shares in exchange for non-monetary assets such as land, the cost of the asset is recorded at the fair value of the shares issued. In this case, Dailey Company issued 3,000 shares at a market price of $22 per share, which equals to $66,000 ($22 x 3,000). Therefore, the correct entry would be to debit Land for $66,000 and credit Share Capital-Ordinary for $66,000. Neither Share Premium-Ordinary nor the advertised price for the land are relevant to this transaction.

Dailey Company Is a Publicly Held Corporation Whose $1 Par