Question

on march 16, complete computer service received a building with a fair market value of $3,000 in exchange for common stock. the journal entry to record this transaction would be: options with tables showing different debit and credit accounts for building and other accounts like common stock, notes payable, retained earnings, cash, and an option i dont know yet

Explanation:

When a company receives an asset (building) in exchange for common stock, the asset (Building) is debited (since assets increase with debit) and the equity account (Common Stock) is credited (since equity increases with credit). The first option has Building debited for $3,000 and Common Stock credited for $3,000, which matches the transaction. The other options use incorrect accounts (Notes Payable is a liability, Retained Earnings is for earnings, Cash is not involved here).

Answer:

The correct option is the first one (the one with "I AM SURE" label):

• Date: (blank, as the date is March 16 but the table has date blank)
• Accounts: Building (Debit: 3,000), Common Stock (Credit: 3,000)