Osbourne, Inc. issued 60,000 shares of common stock in exchange for manufacturing equipment. The equipment has a fair value of $1,420,000. The stock has a par value of $0.05 per share. The journal entry to record this transaction includes a ________
A) debit to Cash for $14,170,000
B) credit to Gain on Sale of Common Stock for $1,480,000
C) credit to Paid-In Capital in Excess of Par-Common for $1,417,000
D) credit to Common Stock-$0.05 Par Value for $1,420,000
C .C)
Equipment 1,420,000
Common Stock—$0.05 Par Value (60,000 x $0.05 ) 3,000
Paid-In Capital in Excess of Par-Common ($1,420,000 - $3,000 ) 1,417,000
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