Prepare the journal entries for each of the 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.

Reference no: EM13527331

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