The correct journal entry for Barton Industries is ...
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Barton Industries recently received an almost new semi-truck and trailer valued at $165,200 in exchange for 4,130 shares of no-par common stock. Previously issued no-par common stock by Barton is currently trading in the open market for $30 per share. Which of the following would be the correct journal entry to record this transaction? Barton Industries
Entry Account Description Debit Credit
1 Vehicles (semi-truck & trailer) 165,200
Paid in Capital in Excess of No Par Value Common Stock 41,300
Common Stock no-par 123,900
2 Common Stock, no-par value 123,900
Vehicles (semi-truck & trailer) 123,900
3 Vehicles (semi-truck & trailer) 165,200
Common Stock, no-par value 165,200
4 Vehicles (semi-truck & trailer) 123,900
Discount on Common Stock 41,300
Common Stock, no-par value 165,200
A. Journal entry #1 is correct
B. Journal entry #3 is correct
C. Journal entry #4 is correct
D. Journal entry #2 is correct
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Solution Summary
The solution provides the correct journal entry with explanation for the Barton Industries exercise.
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The correct answer is 4.
The vehicle is 165,200
There has to be an adjusting transaction for the difference between the truck ...
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