Issuing stock for assets other than cash On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 16,000 shares of $10 par common stock with a current market price of $14. Journalize the entry to record the transaction. If an amount box does not require an entry, leave it blank. 88 Nov. 23 Land V Common Stock ✓ Paid-In Capital in Excess of Par-Common Stock Feedback ✓ Check My Work Recall if the fair value of an asset that is being acquired by issuing stock cannot be determined, the fair market price of the stock issued is used as the value for recording.

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…