Sudoku Company issues 17,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $230,000 and the building at $379,000.

Sudoku Company issues 17,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $230,000 and the building at $379,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Answer


Explanation:
Common stock (17,000 shares × $7 per share) = $119,000
Paid-in capital in excess of par value, common stock ($230,000 + $379,000) – $119,000 = $490,000