On June 30, 2024, Ericson, Inc. purchased land. In payment for the land, Ericson, Inc. issued 10,000 shares of common stock with a $10 par value. The land had been appraised at a market value of $117,000. The journal entry to record this transaction would be:1. **Option A:** - Debit: Land $100,000 - Credit: Common Stock—$10 Par Value $100,0002. **Option B:** - Debit: Land $117,000 - Credit: Common Stock—$10 Par Value $100,000 - Credit: Paid-In Capital in Excess of Par—Common $17,0003. **Option C:** - Debit: Land $137,000 - Credit: Common Stock—$10 Par Value $100,000 - Credit: Paid-In Capital in Excess of Par—Common $37,0004. **Option D:** - Debit: Land $117,000 - Credit: Common Stock—$10 Par Value $117,000The correct option reflects both the par value of the stock issued and the market value of the land received.

Answer :Journal entry to record the transaction : Account Title Debit Credit Land $117,000…

Answered: 00,000 117,000

Business

Accounting

00,000 117,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A firm is considering a project with the following cash flows: $1000, +$9000, $4000, IRRS. +$1000,…

A: IRR: IRR is a measure of relative profitability used in capital budgeting to determine an…

Q: Based on the information above, identify which project (Project A or B) should be accepted? Explain…

A: Net Present Value: It is the present worth of the annual cash flows including the initial cost of…

Q: 6. A B C $70,000 $97,000 $23,000 Sales Variable costs 37,000 51,000 15,000 Contribution margin…

A: Cost is divided into two - Fixed Cost and Variable Cost. Variable cost is the one that changes as…

Q: Crane Lumber, Inc., is considering purchasing a new wood saw that costs $60,000. The saw will…

A: Net present value of a project is the present value of cash inflows less of present value of cash…

Q: consider project D. calculate the payback period project c0 c1 c2 c3 D -372,000 200,000 140,000…

A: Cashflow in year 0 (CF0) = - 372000 CF1 = 200000 CF2 = 140000 CF3 = 72000

Q: 10. If a company has current assets of $230,000 and current liabilities of $100,000 the amount of…

A: Working capital = Current assets - current liabilities

Q: Solve for the Present Value.

A: We can determine the PV of the cash stream using the formula below:In the formula above CFn = Cash…

Q: 3500 3000 2500 2000 1500 1000 500 0 ARITHMETIC II $0.00 1 $1,500 2 Solve for the Annual Worth. • N =…

A: The annual worth refers to the determination of earnings from business operations for different…

Q: 10. Calculate the unrecovered investment balance at the end of each year for the following: 2 3 4…

A: Unrecovered investment balance refers to the remaining amount of an initial investment that has not…

Q: Year 012 Cash flow 58000 -34000 -45000 G H What is the IRR? If the required return is 12%, should…

A: The difference between the current value of cash inflows and outflow of cash over a period of time…

Q: Year Project A -3000 1 1000 2 1000 3 2500 18.54% 19.54% 23.54% 29.54%

A: Net present value (NPV) is used to determine the present value of all future cash flows. Net present…

Q: 10 For questions 10-12, refer to the following problem: A manufacturing company is planning to make…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: $815,000*(1/1+0.05)^6)

A: PRESENT VALUE Present Value is the Current Value of Future Cash Flow at any Discount rate. Present…

Q: Hélp Save & Ex On January 1, Eastern College received $1,330,000 from its students for the spring…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: P2 25. The city treasury began with $1,100,000 at the beginning of the year. Each day since, tax…

A: Tax revenues will add to the city treasury. On the other hand daily expenditure will cause the…

Q: $1897 mibns 000,0062 sw I Y al coles a bl 6) The Kaufmann Group is considering a $364,000 investment…

A: Present value= Sum of (Annual Net cash flow * Present value of $1 at 12%)

Q: oblem 9-13 NPV versus IRR [LO1, 5] nsider the following two mutually exclusive projects: Year Cash…

A: YearCash flow (X)Cash flow (Y)0-$19,600-$19,6001$8,750$9,9002$8,900$7,7003$8,700$8,600

Q: Determine the capitalized cost of a research laboratory which requires P5,000,000 for original…

A: First cost (F) = P 5,000,000 Annual cost (A) = P 100,000 for 5 years and P 147,980 afterwards…

Q: Using the percentage-of-completion (over time) method of revenue recognition, gross profit on…

A: Since you have asked multiple questions, we will answer the first question for you. for question 11…

Q: Please can you show me step by step to solve for OFC? Thank

A: OCF is Operating Cashflow which is the money a firm generates through its regular operations.

Q: [£2,500,000 ×0.04 × PVAF(@7%,3)] +[£2,500,000 × PVF(@7%,3)]

A: FUTURE VALUE Future Value is the Value of Present Cash Flow at any Future Date. Future value is…

Q: PA6. LO 11.3 Gimli Miners recently purchased the rights to a diamond mine. It is estimated that…

A: Depletion expense is a non-cash expense in a accrual accounting method which is used to allocate the…

Q: 1600 1400 1200 1000 800 600 400 200 0 GEOMETRIC I $0.00 Solve for the Future Value. - N = Years i=…

A: Future worth to the total value of cash flows or investments at a specified future point in time and…

Q: Isnt the question $3,500,000 and $3,200,000? not $35,000,000 and 32,000,000

A: Short term debts are the those debts which are expected to be settle within one year form balance…

Q: Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated…

A: To calculate the NPV of the investment, we need to discount the cash flows back to their present…

Q: D) $48 7) A firm has a general-purpose machine, which has a book value of $300,000 and is worth…

A: Solution to Question 7: If the firm sell the machine it would generate a taxable capital gain of…

Q: Year 01234 Proj Y Proj Z ($420,000) ($420,000) 400,000 182,000 185,000 156,000 146,000 175,000 The…

A: 8. Replacement chain approach:The shorter project (Project Z) should be selected and extended to…

Q: Again, you are considering two mutually exclusive projects. Machine A: This project costs $10…

Q: Project A Year -320 0 220 Project B -340 40 2 120 100 m 90 180 1-16% What is the crossover rate? A)…

Q: Required information [The following information applies to the questions displayed below.] On…

A: A company that has significant influence in another company’s voting stock is known as the Holding…

Question

On June 30, 2024, Ericson, Inc. purchased land. In payment for the land, Ericson, Inc. issued 10,000 shares of common stock with a $10 par value. The land had been appraised at a market value of $117,000. The journal entry to record this transaction would be:

1. **Option A:**
- Debit: Land $100,000
- Credit: Common Stock—$10 Par Value $100,000

2. **Option B:**
- Debit: Land $117,000
- Credit: Common Stock—$10 Par Value $100,000
- Credit: Paid-In Capital in Excess of Par—Common $17,000

3. **Option C:**
- Debit: Land $137,000
- Credit: Common Stock—$10 Par Value $100,000
- Credit: Paid-In Capital in Excess of Par—Common $37,000

4. **Option D:**
- Debit: Land $117,000
- Credit: Common Stock—$10 Par Value $117,000

The correct option reflects both the par value of the stock issued and the market value of the land received.

Expert Solution

Step 1

Answer :
Journal entry to record the transaction :

Account Title	Debit	Credit
Land	$117,000
Common stock (10,000*$10)		$100,000
Paid in capital in excess of par common ($117,000-$100,000)		$17,000

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Asappp
Sh13 Please help me Solution Thankyou.
Period A B D -3500 -3000 1500 1800 2100 -3000 -3600 3000 1800 1800 1800 2 2000 1=13% 5500 1000 Which among the four projects has an annual equivalent worth of around P570k?
21 What is the equivalent annual cost for a project that requires a $40,000 investment at time-period zero, and a $10,000 annual expense during each of the next 4 years, if the opportunity cost of capital is 10%? g OD A $20,000.00 B. $21,356.95 С. $22,618.83 D. $25,237.66 O A OB ос
The cash flows associated with a project can be represented by the following decision tree (conditional probabilities are in parentheses): Year 0 Year 1 -$800 $400 (4) $212 56 $500 (6) Year 2 $300 (5) $500 (5) $400 (5) $600 (15) Year 3 $200 (5) $400 (5) $400 (5) $600 (.5) $300 (5) $500 (5) $500 (5) $700 (5) Given this data, determine the expected NPV for this project if the appropriate cost of capital is 12.36 percent.
11
Clarita Contracting builds roads, tunnels, bridges, and other transportation infrastructure. The following are the budgeted costs and time (months) to a given stage of completion for a project to upgrade a bridge to current standards. The project was originally estimated to take 25 months to complete. Also presented are the actual results through the first 11 months of the project. Percentage Complete 0% 4% 8% 12% 16% 20% 24% 28% 32% 36% 40% 44% 48% 52% 56% 60% 64% 68% 72% 76% 80% 84% 88% 92% 96% 100% Cost ($000) Budget 0 213 471 775 1,125 1,520 1,961 2,447 2,979 3,557 4,180 4,849 5,563 6,323 7,129 7,980 8,877 9,819 10,807 11,841 12,920 14,045 15,215 16,431 17,693 19,000 Actual 0 112 266 464 706 990 1,317 1,688 2,102 2,559 3,059 3,063 4,189 4,819 Months to Reach Budget Actual 0 5 7 8 9 10 11 12 13 14 14 15 16 17 18 18 19 20 20 21 22 22 23 24 24 25 0 1 1 2 3 4 4 5 6 7 8 9 10 11
Five mutually exclusive projects had the following data: V W X Y Z NPV $(3,000) $56,000 $23,000 $14,000 $28,000 IRR 7% 10% 15% 13% 6% Which project is preferred?
Your company has a project available with the following cash flows: Year 0 1 2345 Cash Flow -$80,900 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?
EB6. LO 11.2 The management of Ryland International is considering investing in a new facility and the following cash flows are expected to result from the investment: Year Cash Outflow Cash Inflow 1 $ 700,000 $200,000 2 2,100,000 400,000 3 260,000 360,000 4 260,000 800,000 7 480,000 400,000 420,000 8 9. 10 420,000 A. What is the payback period of this uneven cash flow? B. Does your answer change if year 6's cash inflow changes to $920,000?
Recieved 3000
Sh56