On October 10 Maxwell Inc. acquired a piece of equipment by exchanging 1,000 shares of...
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On October 10 Maxwell Inc. acquired a piece of equipment by exchanging 1,000 shares of its $5 par value common stock. The asset had a list price of $10,500 and a cash price of $9,950. On that date Maxwells stock was trading for $10.25 per share. The journal entry to record this exchange will include: A) A debit to Equipment for $9,950 B) A credit to Common Stock for $10,250 C) A credit to Paid-in Capital excess of par for $5,250 D) A credit to Gain on Bargain Purchase for $550
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