As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1 Pina Colada Corp.is a closely heid corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 3.000 shares of its $20 par value common stock. The owners' asking price for the land was $135.000, and the fair value of the land was $115,500. 2. Cullumber Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1.it acquired land by issuing 19,500 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $267,500. The stock was selling at $11 per share. Prepare the journal entries for each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manualy. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Dates Account Titles and Explanation Debit Credit 1. Dec 5 Land 115000 Common Stock 0000 Paid-in Capital in Eces of Par Comon Stock 109000 2. June 1 Land 257000 Conmon Stock 19500 Pald n Capital in Dcess of Par Common Stock 237500

As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1 Pina Colada Corp.is a closely heid corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 3.000 shares of its $20 par value common stock. The owners' asking price for the land was $135.000, and the fair value of the land was $115,500. 2. Cullumber Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1.it acquired land by issuing 19,500 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $267,500. The stock was selling at $11 per share. Prepare the journal entries for each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manualy. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Dates Account Titles and Explanation Debit Credit 1. Dec 5 Land 115000 Common Stock 0000 Paid-in Capital in Eces of Par Comon Stock 109000 2. June 1 Land 257000 Conmon Stock 19500 Pald n Capital in Dcess of Par Common Stock 237500

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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As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients.
Pina Colada Corp. is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired
land by issuing 3,000 shares of its $20 par value common stack. The owners' asking price for the land was $135,000, and the
fair value of the land was $115,500.
1.
2.
Cullumber Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it
acquired land by issuing 19,500 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale
at $267,500. The stock was selling at $11 per share.
Prepare the journal entries for each of the situations above. (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.)
No.
Dates
Account Titles and Explanation
Debit
Credit
1.
Dec. 5
Land
115000
Common Stock
Paid-in Capital in Exess of Par Common Stock
109000
2.
June 1
Land
257000
Conmon Stock
19500
Paid n Capital in Ecess of Par Common Stock
237500

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