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29 August, 07:00

Cedar Corporation issued 36,000 shares of ​ $1 par value common stock in exchange for a building with a market value of $ 160, 000. Record the stock issuance.

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  1. 29 August, 07:12
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    Journal Entry to record the transaction

    Dr. Cr.

    Building $160,000

    Common Stock $36,000

    Add-in-capital Common stock $124,000

    Explanation:

    Market Value of Building = $160,000

    Common stock value = 36,000 x $1 = $36,000

    Add-in-Capital Common stock = $160,000 - 36,000 = $124,000
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