A corporation issued 6,000 $10 par value ordinary shares in exchange for land that has a market value of $84,000. The entry to record this transaction would include:

Question

Quizplus · Accepted Answer

The entry would include a credit to Share Premium-Ordinary for $24,000, which is the excess of the market value of the land ($84,000) over the par value of the shares issued (6,000 shares x $10 par value = $60,000).

A Corporation Issued 6,000 $10 Par Value Ordinary Shares in Exchange