Linear Corporation issued 16,000 shares of its $1 par value common stock in exchange for land that

Question:

Linear issued 16,000 shares of its $1 in exchange for land that had a fair market value of $100,000. Prepare the journal entries necessary to record the issuance of the stock for the land under each of these conditions:
(1) The stock was selling for $7 per share on the day of the transaction,
(2) Management attempted to place a value on the but could not do so.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...