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Guava is a privately-owned company. On September 3, Guava exchanged 2,000 shares of its private...

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Accounting

Guava is a privately-owned company. On September 3, Guava exchanged 2,000 shares of its private common stock for equipment. There is no readily available estimate of the stocks fair value. The equipment currently is selling for $80,000. The journal entry to record this transaction includes

A.Credit: Common stock, $80,000.

B.Debit: Cash, $80,000.

C.No entry is recorded for this exchange.

D.Credit: Sales revenue, $80,000.

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