Question

CraneCompany is a publicly held corporation whose $1 par value stock is actively traded at $31 per share. The company issued 3300 shares of stock to acquire land recently advertised at $106000. When recording this transaction, Crane Company will
debit Land for $106000.
credit Paid-In Capital in Excess of Par for $102300.
credit Common Stock for $102300.
debit Land for $102300.

Answer 1

Answer:

debit Land for $106000.

Explanation:

3300 shares issued against the value of a land $106,000. The land will be debited by it purhcase value. So the $3,300 par value of share will be credited to the common stock account and the remaining $102,700 will be credited to the addin capital excess of par account. So the correct option is debit Land for $106000.