Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $20 per share and the building’s book value on the books of the seller was $211,000. Which of the following journal entries is correct for Smith Company when Smith issues 11,100 shares of $10 par value common stock and pays $21,100 cash in exchange for the building? Please see picture attached

Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $20 per share and the building’s book value on the books of the seller was $211,000. Which of the following journal entries is correct for Smith Company when Smith issues 11,100 shares of $10 par value common stock and pays $21,100 cash in exchange for the building? Please see picture attached

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $38 per share and the bullding's book value on the books of the seller was $215,000. Which of the following is correct for Smith Company when Smith issues 10,000 shares of $10 par value common stock and pays $21,500 cash in exchange for the butlding? Murtiple cholce Total assets Increase $380,000. Stockholders equity increases $215.000. Total assets increase $350.500. stocknoiders' equity increases $358.500.
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