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Office equipment was acquired by issuing 100 shares of $35 par value common stoc

ID: 2448407 • Letter: O

Question

Office equipment was acquired by issuing 100 shares of $35 par value common stock. The stock had a market price of $48 per share.

Construction of Building: A building was constructed on land purchased last year at a cost of $660,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows.

To finance construction of the building, a $2,640,000, 12% construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $880,000 of other outstanding debt during the year at a borrowing rate of 8%.

Record the acquisition of each of these assets.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date Payment 2/1 $528,000 6/1 1,584,000 9/1 2,112,000 11/1 440,000

Explanation / Answer

Office equipment was acquired by issuing 100 shares of $35 par value common stoc

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