Which of the Following Journal Entries Is Correct for Smith $\begin{array}{lr}\text { Building } & 220,000 \\\text { Cash } && 20,000 \\\text { Common stock } \quad\quad\quad\quad&& 200,000\end{array}$

Multiple Choice

Which of the following journal entries is correct for Smith Company when Smith issues 10,000 shares of $20 par value common stock and pays $20,000 cash in exchange for a building? The market price of the Smith stock on the exchange date was $35 per share and the building's book value on the books of the seller was $200,000. a. $\begin{array}{lr}\text { Building } & 220,000 \\\text { Cash } && 20,000 \\\text { Common stock } \quad\quad\quad\quad&& 200,000\end{array}$

b. $\begin{array}{lr}\text { Building } \quad\quad\quad\quad\quad\quad\quad& 370,000 \\\quad \text { Cash } && 20,000 \\\text { Common Stock } && 350,000\end{array}$

c. $\begin{array}{lr}\text { Building } & 370,000 \\\text { Cash } &&200,000 \\\text { Common stock } && 20,000 \\\text { Additional paid-in capital }&&150,000\end{array}$

d. $\begin{array}{lr}\text {Building }&370,000\\\text { Common stock }\quad\quad\quad\quad\quad&&370,000\\\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D