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On December 2, 2014, Ewell Company purchases a piece of land from the original owner. In
exchange 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. Provide the journal entry for
this transaction.
Solution
Land 400000 Common stock 8000 Paid-in capital in excess of par 392000

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On December 2, 2014, Ewell Company purchases a piece of land from th.pdf

  • 1. On December 2, 2014, Ewell Company purchases a piece of land from the original owner. In exchange 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. Provide the journal entry for this transaction. Solution Land 400000 Common stock 8000 Paid-in capital in excess of par 392000