Question

Prepare the journal entry to record Autumn Company’s issuance of 78,000 shares of no-par value common stock assuming the shares:

a. Sell for $32 cash per share.
b. Are exchanged for land valued at $2,496,000.

Answer 1

Answer:

A Journal entry was recorded for Autumn Company  which is given below.

Explanation:

Solution

(A) Journal Entry:

No      Account and Explanation         Debit        Credit

a      Cash (78000*32)                        2496000

            Common Stock                                           2496000

            (To record issued common stock)

(B) Journal Entry:

No      Account and Explanation           Debit     Credit

b          Land                                          2496000

                Common Stock                                     2496000

               (To record issued common stock)