Question

CALCULATOR MESAGE HY INSTRIKTOR STANDARD VIEW RACK NEXT ercise 13-06 an auditor for the CPA firm of Hinkoon and Colvert, you encounter the following situations in auditing different clients LR Corporation is a dosely held corporation whose stock is not publicly traded on December 5, the corporation acquired land by issuing 5,000 shares of its 520 par value common stock. The owners asking price for the land was $120,000, and the fair value of the land was $110,000 Vera Corporation is a publicly held corporation who common stock e d on the markets. O ne Itacured land i ng 20,000 shares of 510 par value stock. At the time of the exchange, the land was advertised for sale at $20,000. The stock was selling at 51 per share repare the journal entries for each of the situations above (Record journal entries in the order presented in the problem Credit accountries are automatically ndented when amount is entered. Do not indent manually.) Debat Credit

Answer 1

Answer-Journal Entries

Date	Account Title and Explanation	Debit ($)	Credit ($)
(a)	Land	110,000
	Common Stock (5,000 shares *$20 par value)		100,000
	Paid-in capital in excess of par value ($110,000-$100,000)		10,000
	(To record the acquisition of land)
(b)	Land (20,000 shares *$11 per share)	220,000
	Common Stock (20,000 shares *$10)		200,000
	Paid-in capital in excess of par value ($220,000-$200,000)		20,000
	(To record the acquisition of land)

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