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As an auditor for the CPA firm of Agler and Carl, you encounter the following situations

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As an auditor for the CPA firm of Agler and Carl, you encounter the following situations
in auditing different clients.

1. Desi Corporation is a closely held corporation whose stock is not publicly traded. On
December 5, the corporation acquired land by issuing 5,000 shares of its $20 par value common
stock. The owners’ asking price for the land was $120,000, and the fair market value of
the land was $110,000.
2. Lucille Corporation is a publicly held corporation whose common stock is traded on the
securities markets. On June 1, it acquired land by issuing 20,000 shares of its $10 par value
stock. At the time of the exchange, the land was advertised for sale at $250,000.The stock was
selling at $11 per share.

Instructions
Prepare the journal entries for each of the situations above.

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