Assume a corporation issues 5,000 shares of $7 par common stock for a building with an unknown value. The corporation's stock is trading at $8.50 per share. What is the appropriate journal entry?
a. Common Stock is debited $35,000, Paid-in Capital in Excess of Par-Common Stock is debited $7,500 and Building is credited $42,500.
b. Building is debited $35,000, Common Stock is credited $35,000.
c. Building is debited $42,500, Common Stock is credited $35,000 and Paid-in Capital in Excess of Par-Common Stock is credited $7,500.
d. Building is debited $42,500, Common Stock is credited $35,000 and Gain on Sale of Stock is credited $7,500
e. Building is debited $42,500, Common Stock is credited $35,000 and Accounts Payable is credited $7,500.
c
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