A Corporation Issued 5,000 Shares of Its $1 Par Value

question 26

Multiple Choice

A corporation issued 5,000 shares of its $1 par value common stock in exchange for land (market value $30,000) and a building (market value of $100,000) .The entry to record this transaction would be:

• A)Debit Land and Building,$130,000; Credit Common Stock,$5,000; Credit Paid-in Capital in Excess of Par Value,Common Stock,$125,000.
• B)Debit Land,$30,000; Debit Building,$100,000; Credit Common Stock,$130,000.
• C)Debit Land and Building,$5,000; Credit Common Stock,$5,000.
• D)Debit Land,$30,000; Debit Building,$100,000; Credit Common Stock,$5,000; Credit Paid-in Capital in Excess of Par Value,Common Stock,$125,000.
• E)Debit Building,$130,000; Credit Common Stock,$130,000.

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