Exercise 13-6 As an auditor for the CPA firm of Hinkson and Calvert, you encount

Question

Exercise 13-6 As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different dients s a cosely held corporation wose stok s not pubidy traded. On December S, the corporation acquired land by issuing 5,00 shares 1. LR Corporation is owners' asking price for the land was $125,500, and the fair value of the land was $122 dosely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,000 shares of its $18 par value common stock. The time of the exchange, the land was advertised for sale at $267,500. The stock was seling at $9 per share. 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 Prepare the journal entries for each of the situations above. (Record journal entries in the order amount is entered. Do not indent manually.) presented in the probiem. Credit account titles are automatically indented when No. Dates Account Titles and Explanation 1. Debit Credit 2.

Explanation / Answer

1 5-Dec Land 122000       Common Stock 90000 =5000*18       Aditional Paid-in -Capital 32000 2 1-Jun Land 267500       Common Stock 160000 =20000*8       Aditional Paid-in -Capital 107500

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