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Instructions Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drive's books for $40,000. Required: 1. Prepare the journal entry to record the acquisition of the land for each of the following independent situations: a. The preferred stock is currently selling for $120 per share. No appraisal is available on the land. b. The land is appraised at $60,000. There have been no recent sales of the preferred stock. c. The preferred stock is currently selling for $135 per share. The land is appraised at $69,000 2. Next Level For Requirement 1(c), discuss why you chose the value used in the journal entry

Instructions Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drive's books for $40,000. Required: 1. Prepare the journal entry to record the acquisition of the land for each of the following independent situations: a. The preferred stock is currently selling for $120 per share. No appraisal is available on the land. b. The land is appraised at $60,000. There have been no recent sales of the preferred stock. c. The preferred stock is currently selling for $135 per share. The land is appraised at $69,000 2. Next Level For Requirement 1(c), discuss why you chose the value used in the journal entry

FINANCIAL ACCOUNTING
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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Ee 96.

Instructions Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drive's books for $40,000 Required: 1. Prepare the journal entry to record the acquisition of the land for each of the following independent situations: a. The preferred stock is currently selling for $120 per share. No appraisal is available on the land. b. The land is appraised at $60,000. There have been no recent sales of the preferred stock c. The preferred stock is currently selling for $135 per share. The land is appraised at $69,000. 2. Next Level For Requirement 1(c), discuss why you chose the value used in the journal entry.
Transcribed Image Text:Instructions Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drive's books for $40,000 Required: 1. Prepare the journal entry to record the acquisition of the land for each of the following independent situations: a. The preferred stock is currently selling for $120 per share. No appraisal is available on the land. b. The land is appraised at $60,000. There have been no recent sales of the preferred stock c. The preferred stock is currently selling for $135 per share. The land is appraised at $69,000. 2. Next Level For Requirement 1(c), discuss why you chose the value used in the journal entry.
b. The land is appraised at $60,000. There have been no recent sales of the preferred stock. General Journal Instructions How does grading work? 1 2 2 3 3 DATE Dec. 31 Land General Journal Instructions How does grading work? c. The preferred stock is currently selling for $135 per share. The land is appraised at $69,000. DATE Preferred Stock Additional Paid-in Capital on Preferred Stock GENERAL JOURNAL ACCOUNT TITLE Dec. 31 Land GENERAL JOURNAL ACCOUNT TITLE Preferred Stock Additional Paid-in Capital on Preferred Stock POST. REF. V POST. REF. DEBIT 65,000.00 DEBIT 64,000.00 PAGE 1 Score: 33/37 CREDIT 50,000.00 15,000.00 PAGE 1 Score: 33/37 CREDIT 50,000.00 12,500.00
Transcribed Image Text:b. The land is appraised at $60,000. There have been no recent sales of the preferred stock. General Journal Instructions How does grading work? 1 2 2 3 3 DATE Dec. 31 Land General Journal Instructions How does grading work? c. The preferred stock is currently selling for $135 per share. The land is appraised at $69,000. DATE Preferred Stock Additional Paid-in Capital on Preferred Stock GENERAL JOURNAL ACCOUNT TITLE Dec. 31 Land GENERAL JOURNAL ACCOUNT TITLE Preferred Stock Additional Paid-in Capital on Preferred Stock POST. REF. V POST. REF. DEBIT 65,000.00 DEBIT 64,000.00 PAGE 1 Score: 33/37 CREDIT 50,000.00 15,000.00 PAGE 1 Score: 33/37 CREDIT 50,000.00 12,500.00
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