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Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for...

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Accounting

Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drives books for $55,000. The preferred stock is currently selling for $140 per share and there is no available appraisal of the land. The journal entry to record the nonmonterary exchange should include which of the following? a. Credit to Preferred Stock for $70,000 b. Debit to Additional Paid-in Capital on Preferred Stock for $20,000 c. Credit to Additional paid-in capital on Preferred Stock for $70,000 d. Debit to land for $70,000

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