Tom Yuppy, a wealthy investor, exchanged a plot of land that originally cost him $26,520 for 1,020 shares of $10 par common stock issued to him by Leuig Corporation On the same date, Leuig Corporation issued an additional 2,040 shares of stock to Yuppy for $26 per share. Required What was the value of the land at the date of the stock issue? Show the effect of the two stock issues on Leuig’s books in a horizontal statements model. Prepare the journal entries to record these transactions.
Tom Yuppy, a wealthy investor, exchanged a plot of land that originally cost him $26,520 for 1,020 shares of $10 par common stock issued to him by Leuig Corporation On the same date, Leuig Corporation issued an additional 2,040 shares of stock to Yuppy for $26 per share. Required What was the value of the land at the date of the stock issue? Show the effect of the two stock issues on Leuig’s books in a horizontal statements model. Prepare the journal entries to record these transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tom Yuppy, a wealthy investor, exchanged a plot of land that originally cost him $26,520 for 1,020 shares of $10 par common stock issued to him by Leuig Corporation On the same date, Leuig Corporation issued an additional 2,040 shares of stock to Yuppy for $26 per share.
Required What was the value of the land at the date of the stock issue?
Show the effect of the two stock issues on Leuig’s books in a horizontal statements model.
Prepare the
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