Answer :
Answer:
Dr. Land $2,072,000
Cr. Common stock $2,072,000
Explanation:
As company has received a land against the share issuance. The exchange value will be the value of transaction rather the given value of share. Shares issued in exchange of land is recorded using the exchange value of the Land.
Exchange value of Land = $2,072,000
Number of Shares = 74,000
Share price= $28
No par value value share are recorded in as the common stock there is no excess of par value.
Answer:
Journal entry:
Debit land Account with $2,072,000
Credit common stock Account with $2,072,000
(Being sale of 74,000 shares in exchange for land valued at the selling price of shares)
Explanation:
Autumn Company
74,000 shares at $28 = $2,072,000
Instead of being paid cash for the sale of shares, land was the consideration for the sale
Journal entry:
Debit land Account with $2,072,000
Credit common stock Account with $2,072,000
(Being sale of 74,000 shares in exchange for land valued at the selling price of shares)