Question

Prepare the journal entry to record Autumn Company’s issuance of 63,000 shares of no-par value common stock assuming the shares:

a. Sell for \(29 cash per share.

b. Are exchanged for land valued at \)1,827,000

Short answer

(a) Cash account will be debited and common stock account will be credited by $1,827,000, respectively.

(b) Land account will be debited and common stock account will be credited by $1,827,000, respectively.

Step-by-step solution

(a) Recoding of Journal Entries –Autumn Company’s issuance of 63,000 no par value shares at $ 29 Per Share

Date	Account and explanation	Debit	Credit
	Cash	$ 1,827,000
	Common Stock, No- Par Value		$ 1,827,000
	Issued stock for cash (63,000 x $29)

(b)Recoding of Journal Entries – Autumn Company’s issuance of 63,000 no par value shares in exchange of land

Date	Account and explanation	Debit	Credit
	Land	$ 1,827,000
	Common Stock, No- Par Value		$ 1,827,000
	Issued stock in exchange for land