Brief Exercise 13-05 Pronghorn Inc.’s $11 par value common stock is actively traded at a market price of $14 per share. Pronghorn issues 5,900 shares to purchase land advertised for sale at $77,000. Journalize the issuance of the stock in acquiring the land

Explanation:

The journal entry for issuance of the stock for acquiring the land is shown below:

Land A/c Dr   $82,600               (5,900 shares × $14 per share)

       To Common stock A/c $64900           (5,900 shares × $11 per share)

       To Additional paid-in capital in excess of par - Common stock A/c $17,700             (5,900 shares × $3 per share)

(Being the issuance of the stock for acquiring the land is recorded)