Assignment Instructions/ Description
I am needing assitance with this journal entry. The 2nd account name is not correct and I have attempted everyone of the sections option to my knowledge. The dollar amount is quite perplexing to me. �Do I go by the purchase amount added to the cost of construction? or at the time of issuance?�Image transcription textKnowledge Check 01
On January 15, Pinkney, Incorporated, issued 10,000 shares of $10 par value common stock in exchange for land and a building. Five
years ago, the stockholder purchased the land for $40,000 and constructed the building at a cost of $90,000. At the time of the stock
issuance, the land and the building had fair market values of $45,000 and $95,000, respectively.
Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in
the debit or credit columns.
X Answer is not complete.
No
Date
General Journal
Debit
Credit
1
Jan 15
Land
V
Common stock, $10 par value
X
Paid in capital in excess of par value
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