Concept: Exchanging Common Stock for Assets Other than Cash6m
Concept: Exchanging Common Stock for Services4m
If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at
a. fair market value.
d. a nominal amount.
Lynn Lipincott invested land valued at $5,000 in her business. This transaction would be recorded by:
a. Dr. Cash 5,000 Cr. Capital Stock 5,000
b. Dr. Land 5,000 Cr. Capital Stock 5,000
c. Dr. Land 5,000 Cr. Service Revenue 5,000
d. Dr. Capital Stock 5,000 Cr. Land 5,000