A corporation issued 5,000 shares of $10 par value common stock in exchange for

Entry to Record this exchange is :

Land $70,000 (debit)

Common Stocks $50,000 (credit)

Share Premium $20,000 (credit)

Explanation:

The Value of the Common Stocks used to settle the land purchase is equivalent to the market value of the land of $70,000.

The Common Stocks have a par value of $10, this means that any amount that is paid in excess of this par value is accounted for in the Share Premium Reserve.

Entry to Record this exchange is :

Land $70,000 (debit)

Common Stocks $50,000 (credit)

Share Premium $20,000 (credit)

B. It is a part of the marketing mix.

Explanation:

Price refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.

Price is important to a company because it is a part of the marketing mix.

Generally, a marketing mix is made up of the four (4) Ps;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

Price is generally considered to be a variable in the marketing mix that is most flexible because unlike other elements of production, it can be easily changed. An organization can decide to either raise or lower it's price depending on the nature of the market.