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Unformatted text preview: Cash 218,000 Paid-in Capital in Excess of Par Common Stock (b) Prepare the journal entry to record item 2. Description/Account Debit Land 46,000 Paid-in Capital in Excess of Par Common Stock (c) Prepare the journal entry to record item 3 using the cost method. Description/Account Debit Treasury Stock 22,000 Cash Solution E15-6 (a) Description/Account Cash [(5,000 × $45) - $7,000] Paid-in Capital in Excess of Par Common Stock (5,000 × $10) (b) Description/Account Land (1,000 × $46) Paid-in Capital in Excess of Par ($46,000 - $10,000) Common Stock (1,000 × $10) Note : The fair value of the stock ($46,000) is used to value the exchange because it is a more objective measure tha (c) Description/Account Treasury Stock (500 × $44) Cash...
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This note was uploaded on 03/25/2012 for the course ACCT 102 taught by Professor Benz during the Spring '12 term at CUNY Baruch.
- Spring '12