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A company has common stock with a $10 par value and fair market value of $15. The company exchanges 1,000 share of this common stock for an acre of land. I. The land will be debited for $10,000. II. Common stock account will be credited for $10,000 and no additional paid-in capital will be recorded.

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Chilljain33idn

In the given situation above, the journal entry will be that the land will be debited for $15,000; and the common stock account will be credited with $10,000 and the additional paid up capital account will be credited for $5,000. So, the given options do not hold true.

What is a journal entry?

A chronological recording of financial or accounting transactions of an organization in the journal books of the corporation, as and when they occur, is known as a journal entry.

Hence, the given conditions regarding the journal entry do not hold true.

Learn more about a journal entry here:

https://brainly.com/question/20421012

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