31 NEED HELP ASAP Ranier Company is authorized to issue 10,000 shares of 8%, $10

Question

31 NEED HELP ASAP

Ranier Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Ranier issues 5,000 shares of preferred stock for land with an asking price of $575,000 and a market value of $550,000, which of the following would be the journal entry for Ranier to record?

Land 500,000
Preferred Stock 500,000

Land 550,000
Preferred Stock 550,000

Land 575,000
Preferred Stock 500,000
Paid-in Capital in Excess of Par-Preferred 75,000

Land 550,000
Preferred Stock 500,000
Paid-in Capital Excess of Par-Preferred 50,000

Land 500,000
Preferred Stock 500,000

Land 550,000
Preferred Stock 550,000

Land 575,000
Preferred Stock 500,000
Paid-in Capital in Excess of Par-Preferred 75,000

Land 550,000
Preferred Stock 500,000
Paid-in Capital Excess of Par-Preferred 50,000

Explanation / Answer

Land 550,000 Preferred Stock 500,000 Paid-in Capital Excess of Par-Preferred 50,000 Journal Entry Particulars Dr Amt Cr Amt Land DR                 550,000.00 To Preferred Stock = 5000*100         500,000.00 To Paid-in Capital Excess of Par-Preferred = 550,000 - 500,000           50,000.00

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