On December 2, 2017, Ewell, Inc purchases land
In payment for the land, Ewell, Inc issues 6,000 shares of common stock with $6 par value. The land has been appraised at a market value of $430,000. Which of the following is included in the journal entry to record this transaction?
A) debit Common Stock-$6 Par Value for $36,000 and debit Paid-In Capital in Excess of Par
-Common $394,000
B) credit Common Stock-$6 Par Value for $36,000 and credit Paid-In Capital in Excess of Par-Common $394,000
C) credit Common Stock-$6 Par Value for $430,000
D) debit Cash $430,000
B .B)
Land 430,000
Common Stock—$6 Par Value (6,000 x $6 ) 36,000
Paid-In Capital in Excess of Par—Common ($430,000 - $36,000 ) 394,000
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