On December 2, 2015, Ewell Company Purchases a Piece of Land

question 157

Multiple Choice

On December 2, 2015, Ewell Company purchases a piece of land from the original owner. In payment for the land, Ewell Company issues 8,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $400,000. Which of the following is included in the journal entry to record this transaction?

• A)debit Common Stock-$1 Par Value for $8,000 and debit Paid-In Capital in Excess of Par-Common $392,000.
• B)credit Common Stock-$1 Par Value for $8,000 and credit Paid-In Capital in Excess of Par-Common $392,000.
• C)credit Common Stock-$1 Par Value for $400,000.
• D)debit Cash $400,000.

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Definitions:

Social Needs

The need for love, companionship, and friendship—the desire for acceptance by others.

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The feeling of fellowship or friendship provided by a companion or companions.