Soku Company issues 29,000 shares of $6 par value common stock in exchange for land and a building. The land is valued at $233,000 and the building at $366,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Soku Company issues 29,000 shares of $6 par value common stock in exchange for land and a building. The land is valued at $233,000 and the building at $366,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.


Explanation:

Common Stock (29,000 shares × $6 per share) = $174,000

Paid-In Capital in Excess of Par Value, Common Stock ($233,000 + $366,000) – $174,000 = $425,000