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A Corporation Issued 5,000 Shares of $10 Par Value Common

Question 133

Multiple Choice

A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value of $70,000. The entry to record this exchange is:

A) Debit Land $50,000; credit Common Stock $50,000.
B) Debit Common Stock $50,000; debit Paid-In Capital in Excess of Par Value, Common Stock $20,000; credit Land $70,000.
C) Debit Common Stock $70,000; credit Land $70,000.
D) Debit Land $70,000; credit Common Stock $50,000; credit Paid-In Capital in Excess of Par Value, Common Stock $20,000.
E) Debit Land $70,000; credit Common Stock $70,000.

Correct Answer: