On January 31, 2008, Cesarino Corp. exchanged 10,000 shares of its $1 par common stock for the

Question:

On January 31, 2008, Cesarino Corp. exchanged 10,000 shares of its $1 par common stock for the following assets:

(a) A trademark valued at $145,000.

(b) A building, including land, valued at $650,000 (20% of the value is for the land).

Cesarino Corp. stock is selling at $91 per share on the date of the exchange. Give the entries to record the exchange on Cesarino’s books.

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...