CraneCompany is a publicly held corporation whose $1 par value stock is actively traded at $31...
CraneCompany is a publicly held corporation whose $1 par value stock is actively traded at $31 per share. The company issued 3300 shares of stock to acquire land recently advertised at $106000. When recording this transaction, Crane Company will
| debit Land for $106000. |
| credit Paid-In Capital in Excess of Par for $102300. |
| credit Common Stock for $102300. |
| debit Land for $102300. |
Homework Answers
![The answer is debit land for $102,300 An asset should to be reported at the cost which is either the fair value of the consideration given up (or) the fair value of the consideration received, whichever is more clearly determinable Fair value of the shares issued in exchange for the land - 3,300 shares x $31 per share $102,300 >fair value of the consideration given up The journal entry is as follows: Account titles and explanation Debit Credit Land $102,300 Common stoclk (Par value 3,300 shares x $1 per share) $3,300 Paid-in Capital in Excess of par Total value - Par value S102,300 - $3,300] $99,000 (To record purchase of land in exchange of shares)](http://img.homeworklib.com/questions/3575cd10-6e53-11ea-8e04-eb6b3a8155ec.png?x-oss-process=image/resize,w_560)
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CraneCompany is a publicly held corporation whose $1 par value
stock is actively traded at $31...
22. Dailey Company is a publicly held corporation whose €1 par value ordinary shares are actively...
Dailey Company is a publicly held corporation whose €1 par value ordinary shares are actively traded at €22 per share. The company issued 3,000 shares to acquire land recently advertised at €82,000. When recording this transaction, Dailey Company will a. debit Land for €82,000. b. credit Share Capital-Ordinary for €66,000. c. debit Land for €66,000. d. credit Share Premium-Ordinary for €79,000.
1. When a company’s stock is actively traded on a major exchange is traded for equipment:...
1. When a company’s stock is actively traded on a major exchange is traded for equipment: A. No entry is recorded because no cash was exchanged. B. An asset is recorded for the fair value of the stock. C. An asset is recorded for the appraised value of the equipment. D. Paid-in capital is increased by the appraised value of the equipment. 2. Paid-in capital in excess of par is reported as: A. A reduction of shareholders’ equity. B. A...
A corporation issued 6,000 shares of its $2 par value common stock in exchange for land...
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Exercise 11-8 Your answer is partially correct. Try again. As an auditor for the CPA firm...
Exercise 11-8 Your answer is partially correct. Try again. As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1. LR Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 4,400 shares of its $19 par value common stock. The owners' asking price for the land was $132,700, and the fair value of the land was $118,700. 2....
Prepare the necessary journal entry for each of the following transactions for Terpsichorp Corporation. (Credit account...
Prepare the necessary journal entry for each of the following transactions for Terpsichorp Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (a) Issued 2,000 shares of its $10 par value common stock for $20 per share. (b) Issued 5,000 shares of its stock for land advertised for sale at $90,000. Terpsichorp’s stock is actively traded at a market price of $16 per share. No. Account Titles and Explanation Debit Credit (a) (b)
Crane Company originally issued 4400 shares of $10 par value common stock for $132000 ($30 per...
Crane Company originally issued 4400 shares of $10 par value common stock for $132000 ($30 per share). Crane subsequently purchases 430 shares of treasury stock for $26 per share and resells the 430 shares of treasury stock for $31 per share. In the entry to record the sale of the treasury stock, there will be a credit to Common Stock for $11180. credit to Paid-In Capital from Treasury Stock for $2150. debit to Paid-In Capital in Excess of Par of...
A corporation issued 5,000 shares of its no par common stock that was assigned a $1...
A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share. The issue price was $10 per share. The entry to record this transaction would be Debit Cash $50,000; credit Paid-in Capital in Excess of Stated Value, Common Stock $45,000; credit Common Stock $5,000. Debit Cash $50,000; credit Common Stock $50,000. Debit Common Stock $50,000; credit Cash $50,000. Debit Treasury Stock $50,000; credit Cash $50,000. Debit Common Stock $25,000; debit Paid-in...
Instructions Journalize the transactions. E13.6 (LO 2) As an auditor for the CPA firm of Hinkson...
Instructions Journalize the transactions. E13.6 (LO 2) As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. Journalize noncash common stock transactions. 1. LR 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 value of the land...
Tamarisk Company obtained land by issuing 2,950 shares of its $10 par value common stock. The...
Tamarisk Company obtained land by issuing 2,950 shares of its $10 par value common stock. The land was recently appraised at $122,940. The common stock is actively traded at $40 per share. Prepare the journal entry to record the acquisition of the land. (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.) Account Titles and Explanation Debit...
Blue Company obtained land by issuing 2,430 shares of its $12 par value common stock. The...
Blue Company obtained land by issuing 2,430 shares of its $12 par value common stock. The land was recently appraised at $106,500. The common stock is actively traded at $42 per share. Prepare the journal entry to record the acquisition of the land. (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 O for the amounts.) Account Titles and Explanation Debit...
Exercise 11-8 Your answer is partially correct. Try again. As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1. LR Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 4,400 shares of its $19 par value common stock. The owners' asking price for the land was $132,700, and the fair value of the land was $118,700. 2....
Instructions Journalize the transactions. E13.6 (LO 2) As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. Journalize noncash common stock transactions. 1. LR 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 value of the land...
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Blue Company obtained land by issuing 2,430 shares of its $12 par value common stock. The land was recently appraised at $106,500. The common stock is actively traded at $42 per share. Prepare the journal entry to record the acquisition of the land. (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 O for the amounts.) Account Titles and Explanation Debit...
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