Question

Return to Blackboard Weygandt, Accounting Principles, 13e Exercise 13-06 As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients 1. Sarasota Corporation is a closely held corporation whose stock is not publicty traded. On December 5, the corporation acquired land by issung 5,000 shares of is $20 par valute commen stock. The ownert'esking pricer tor tne lund wa $135,000, and the fair value of the land was $115,000 traded on the securities markets. On June 1, t acquired land by issuing 21,000 shares of ts 39 par vasive stook At the teme of the excherpe, e n advertised for sale at $272,000. The stock was selling at $10 per share. account tieles are automatically indented wher amount in antered De not indent Prepare the journal entries for each of the situations above. (Record manually) journal entries in the order presented in the problem. Credit account titles are Dates Account Titles and Explanation Debit for this question: oen Shaw w Click if you would ike to Show Work

Answer 1

Journal entries:
Date	Accounts title and explanations					Debit $	Credit $
5.12	Land Account					115000
	Common Stock capital (5000 shares @ 20)						100000
	Additional paid in capital						15000
	(For land purchased and recorded at fair value of land)
1.06	Land Account (21000 shares @ 10)					210000
	Common Stock capital (21000 shares @ 9)						189000
	Additional Paid in capital						21000
	(for land purchased and recorded at fair value of shares)