On 2 December 2014, Ewell Company Purchases a Piece of Land

Multiple Choice

On 2 December 2014, Ewell Company purchases a piece of land from the original owner. In payment for the land, Ewell Company issues 8 000 ordinary shares each with a market value of $30. The land has been appraised at a market value of $400 000. The journal entry to record this transaction would include which of the following items?

A) Debit Ordinary share capital $160 000
B) Credit Ordinary share capital $240 000
C) Debit Cash $400 000
D) Credit Ordinary share capital $400 000