Acc280 Financial Accounting: E13-6 As an auditor for the CPA firm of Bunge and Dodd

Acc280 Financial Accounting
E13-6
As an auditor for the CPA firm of Bunge and Dodd, you encounter the following situations in auditing different clients.
1. Desi Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,000 shares of its $20 par value common stock. The owners' asking price for the land was $120,000, and the fair market value of the land was $115,000.
2. Lucille Corporation 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 $10 par value stock. At the time of the exchange, the land was advertised for sale at $250,000. The stock was selling at $12 per share.

Instructions

Prepare the journal entries for each of the situations above. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
1. Desi Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,000 shares of its $20 par value common stock. The owners' asking price for the land was $120,000, and the fair market value of the land was $115,000.
2. Lucille Corporation 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 $10 par value stock. At the time of the exchange, the land was advertised for sale at $250,000. The stock was selling at $12 per share.
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