A Corporation Issued 5,000 Shares of Its $1 Par Value

Multiple Choice

A corporation issued 5,000 shares of its $1 par value common stock in exchange for land (market value $30,000) and a building (market value of $100,000) .The entry to record this transaction would be:

A) Debit Land and Building,$130,000; Credit Common Stock,$5,000; Credit Paid-in Capital in Excess of Par Value,Common Stock,$125,000.
B) Debit Land,$30,000; Debit Building,$100,000; Credit Common Stock,$130,000.
C) Debit Land and Building,$5,000; Credit Common Stock,$5,000.
D) Debit Land,$30,000; Debit Building,$100,000; Credit Common Stock,$5,000; Credit Paid-in Capital in Excess of Par Value,Common Stock,$125,000.
E) Debit Building,$130,000; Credit Common Stock,$130,000.