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

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) $\begin{array} { l r } \text { Building } & 220,000 \\\quad \text { Cash } && 20,000 \\\quad \text { Common stock } && 200,000\end{array}$
B) $\begin{array} { l r } \text { Building } & 370,000 \\\quad \text { Cash } && 20,000 \\\text { Common Stock } & &350,000\end{array}$
C) $\begin{array} { l r } \text { Building } & 370,000 \\\text { Cash } & 20,000 \\\text { Common stock } & 200,000 \\\text { Additional paid-in capital } & 150,000\end{array}$
D) $\begin{array} { l l } \text { Building } & 200,000 \\\quad\quad\text { Common stock } &\quad\quad\quad 200,000\end{array}$