General Journal Date Account Title and Description Ref. Debit Credit 20X0 July 1 Organization Costs 50,000 Common Stock (10,000 × $0.50) 5,000 Additional Paid-in-Capital 45,000 Issue 10,000 shares to settle attorney's invoice for start-up costs If The J Trio, Inc., an established corporation , issues 10,000 shares of its $1 par value common stock in exchange for land to be used as a plant site, the market value of the stock on the date it is issued is used to value the transaction. The fair market value of the land cannot be objectively determined as it relies on an individual's opinion and therefore, the more objective stock price is used in valuing
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