CALCULATOR ER VERSION BACK NE: Question 1 s an auditor for the CPA firm of Hlnks

Question

CALCULATOR ER VERSION BACK NE: Question 1 s an auditor for the CPA firm of Hlnkson and Calvert, you encounter the following situations in auditing different clients 1 . Sunland Compeny is a closely heid corporation whose stock is not pubildy traded. On December 5, the corporation acquired land by issuing 5,000 shares of its $18 par value commo stock. The owners' asking price for the land was $125,500, and the fair value of the land was $122,000 2. Blossom Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 20,000 shares of its $8 par value stock. At the time of the exchange, the land was advertised for sale at $267,500. The stock was selling at $9 per share. Prepare the yournal entries for each of the situetions above. (Record journal entries in the order presented in the problem. Credilt account when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the acco tities are automatically Indented unt titles and enter O for the amounts.) DebitCredit No. DatesAccount Titles and Explanation 1. 2. Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Date Accounts Debit Credit 5-Dec Land $122,000 Common Stock (5,000 x $18) $90,000 Additional Paid-in Capital $32,000 (To record purchase of land) 1-Jun Land $180,000 Common Stock (20,000 x $8) $160,000 Additional Paid-in Capital (20,000 x $9 - $8) $20,000 (To record purchase of land)

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