Sudoku Company issues 24,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $236,000 and the building at $378,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

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

Explanation:

Land A/c ... Dr $236,000

Building A/c ... Dr $378,000

Common Stock A/c ... Cr $192,000

Paid in Capital in excess of par value of Common stock A/c ... Cr $422,000

Working Note:

Common Stock = Number of shares * Rate per share

= 24,000 * $8

= $192,000

Paid in Capital in excess of par value of Common stock = (Land + Building) - Common Stock

= ($236,000 + $378,000) - $192,000

= $614,000 - $192,000

=$422,000