As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. Swifty Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,800 shares of its $20 par value common stock. The owners' asking price for the land was $139,200, and the fair value of the land was $127,600. 1. 2. Blue Spruce Corporation is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 23,200 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $290,000. The stock was selling at $11 per share. Prepare the journal entries for each of the situations above. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Dates Account Titles and Explanation Debit Credit Dec. 5 V Land 127600 Common Stock 116000 Paid-in Capital in Excess of Par-Common Stock 11600 June 1 Land 290,000 Common Stock 232000 Paid-in Capital in Excess of Par-Common Stock 34800

As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. Swifty Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,800 shares of its $20 par value common stock. The owners' asking price for the land was $139,200, and the fair value of the land was $127,600. 1. 2. Blue Spruce Corporation is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 23,200 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $290,000. The stock was selling at $11 per share. Prepare the journal entries for each of the situations above. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Dates Account Titles and Explanation Debit Credit Dec. 5 V Land 127600 Common Stock 116000 Paid-in Capital in Excess of Par-Common Stock 11600 June 1 Land 290,000 Common Stock 232000 Paid-in Capital in Excess of Par-Common Stock 34800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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