5. The Baker Corporation is a publicly held corporation whose $10 par value stock is actively trading at $30 per share. The company issued 2,000 shares of stock to acquire land recently advertised at $65,000. When recording this transaction, the Baker Corp will
a. Debit Land for $65,000.
b. Credit Common Stock for $60,000.
c. Credit Paid-in Capital in Excess of Par Value-common stock for $40,000.
d. Credit Paid-in Capital in Excess of Par Value-common stock for $45,000.
Make the Journal entry for the acquisition of the land below:
Land 65000

6. A corporation has the following account balances: Common Stock, $1 par value, $100,000; Paid-in Capital in Excess of Par Value-Common Stock, $200,000. The treasury contains 1,000 shares of common stock which cost $5 a share. Retained earnings has a $20,000 balance. Based on this information, which of these statements is incorrect?
a. Total paid-in capital is $315,000
b. Average issue price is $3 a share
c. Average issue price is $3.18
d. Number of shares outstanding is 99,000

7. A company purchases 900 shares of its $25.00 par value stock at $35.00 per share. It then reissues 300 shares at $40.00 per share. The entry upon reissue of the stock would include a credit to
a. Cash for $1,500.
b. Treasury Stock for $1,500.
c. Retained Earnings for $1,500.
d. Paid-in Capital from Treasury Stock for $1,500.

Make the Journal entry for the purchase of the treasury stock:
Make the journal entry for the reissue (sale) of the treasury stock:

8. Make the journal entries for the treasury stock transactions listed below:
June 1: The company purchased 5,000 shares of their common stock for the treasury stock for $12 a share.
October 1: The company sold 1,500 shares of treasury stock for $13 a share.
December 1: The company sold 2,000 shares of treasury stock for $5 a share.

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5 Answer is C: Credit Paid-in Capital in Excess of Par Value-common stock for $40,000.
Journal Entry for Transaction of Land
Land Dr $60.000
To Common Stock at Par Value $20.000
To Paid in Capital in Excess of Par Value $40.000
(Being Land purchased against issue of shares. As the trading value of shares is more objective, it has been taken as fair value of shares....
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