E&F Corporation Issued 3,000 Shares of $10 Par Value Common

question 49

Multiple Choice

E&F Corporation issued 3,000 shares of $10 par value common stock in exchange for a tract of land valued at $135,000.Since all company stock is privately held,there is no market value for the stock.The journal entry to record this exchange includes a:

• A)credit to Paid-in-Capital in Excess of Par--Common Stock for $105,000
• B)credit to Common Stock for $135,000
• C)debit to Donated Capital for $105,000
• D)debit to Land for $30,000

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Definitions:

Quality

The standard of something as measured against other similar things; a degree of excellence.

Harmony

A state of agreement, consistency, or congruence between parts, individuals, or groups, often resulting in a more effective or pleasant outcome.

Efficiency

The ability to achieve a goal or perform a task with the minimum amount of effort, time, and waste.

Pay Raise

An increase in an employee's salary or wages, often awarded for performance, longevity, or cost of living adjustments.