The Blair Corporation issued 240 shares…

Question:

The Blair Corporation issued 240 shares of common stock (par value $200 per share) for land having a fair market value of $60,000 at the date of transfer. Which of the following is the required entry?

a.Land60,000Common Stock60,000
b.Land48,000Common Stock48,000
c.Land60,000Common Stock48,000Paid-in Capital in Excess of Stated Value12,000
d.Land60,000Common Stock48,000Paid-in Capital in Excess of Par Value12,000

Answer:

The Answer is “C”

Land Value = $ 60,000

Number of share issued = 240 and par value per share $ 200

Total Value of Shares = 240*200 = $ 48,000

The entry would be:

Land    $ 60,000

       Common Stcok $ 48,000

       Paid in Capital in Excess of stated Value $ 12,000

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