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Hurd Company exchange property for stock; Bunyan par stock

31. Hurd Company acquired a building valued at $160,000 for property tax purposes in exchange for 10,000 shares of its $5 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Hurd Company?


32. When Bunyan Corporation was formed on January 1, 20xx, the corporate charter provided for 100,000 share of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 8,000 shares of stock at a price of $22.00 per share.
The entry to record the above transaction would include a ________.

debit to Cash for $80,000
credit to Common Stock for $176,000
credit to Paid in Capital in Excess of Par- for $96,000
debit to Common Stock for $80,000

Solution Preview

31. The answer is $150,000 and the reason it is the correct answer is that the value based on trading shares of stock is a more objective and current ...

Solution Summary

For the two problems, the solution shows the calculations together with explanation of the answer.