Journal entry to properly record the transaction


Problem:

On August 11, Tinsle issued 20,000 shares of its $10 par value common stock in exchange for some equipment. The equipment's fair market value is estimated at $360,000 by an outside appraisal. On the date of the exchange, the stock was being actively traded at $17 per share on a major stock exchange.

Prepare the necessary journal entry to properly record the transaction.

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Finance Basics: Journal entry to properly record the transaction
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