On February 1, 2011, the Xilon Corporation issued 5,000 shares of its nopar common stock in exchange

Question:

On February 1, 2011, the Xilon issued 5,000 shares of its nopar in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's had a fair value of $18 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2011, at a cost of $600,000. Xilon paid $400,000 in cash and the remainder was paid by the city of Monrovia.

Required:
Prepare the journal entries to record the acquisition of the land and the building.

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...