On December 2, 2014, Ewell Company Purchases a Piece of Land

question 5

Multiple Choice

On December 2, 2014, 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. The journal entry to record this transaction would include which of the following items?

• A) Debit Common stock $8,000 and debit Paid-in capital $392,000.
• B) Credit Common stock $8,000 and credit Paid-in capital $392,000.
• C) Credit Common stock $400,000.
• D) Debit Cash $400,000.

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Definitions:

Showmanship

The skill or art of performing in a manner that captivates and engages an audience, often used in the context of sales, entertainment, or presentations.

Cutting Area

The designated workspace or section in a manufacturing or production setting where materials are cut to size or shape.

Landscapers

Professionals who plan and execute the design of outdoor spaces, including gardens, parks, and residential or commercial properties.

Fire-Retardant

A substance that is applied to material or integrated into it to decrease the flammability and resist the spread of fire.