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Sudoku Company issues 24,000 shares of $9 par value common stock in exchange for land and a building. The land is valued at $227,000 and the building at $369,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Answer :

Explanation:

The journal entry is shown below:

Land Dr $227,000

Building Dr $369,000

       To Common Stock $216,000        (24,000 shares × $9)

       To Additional paid in capital in excess of par value - Common stock $280,000

(Being the issuance of the stock in exchange for the land and the building is recorded)

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