Brief Exercise 13-05 Pronghorn Inc.'s $11 par value common stock is actively traded at a market price of $14 per share. Pronghorn issues 5,900 shares to purchase land advertised for sale at $77,000. Journalize the issuance of the stock in acquiring the land

The journal entry for issuance of the stock for acquiring the land is shown below:

Land A/c Dr $82,600 (5,900 shares * $14 per share)

To Common stock A/c $64900 (5,900 shares * $11 per share)

To Additional paid-in capital in excess of par - Common stock A/c $17,700 (5,900 shares * $3 per share)

(Being the issuance of the stock for acquiring the land is recorded)