Prepare the journal entry to record the land acquisition

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Question - Pelican Corporation was organized on January 1, 2021, with 700,000 authorized $5 par common shares and 100,000 authorized $15 par preferred shares. During 2021 (the first year of operations), the corporation had the following capital transactions:

January 1 Issued 370,000 common shares and 85,000 preferred shares for $15,792,000

March 31 Issued 25,000 shares of common stock in exchange for land apprised at $675,000. The stock was actively trading at $28 per share on March 31.

July 31 Repurchased 135,000 shares of common stock at $32 per share

September 20 Sold 33,000 treasury shares at $33 per share

December 20 Sold 90,000 treasury shares at $29 per share

Required -

a. On January 1, 2021, the common stock was valued at $23 per share and the preferred stock value was unknown. Prepare the entry to record the stock issuance on January 1, 2021.

b. Prepare the journal entry to record the land acquisition on March 31.

c. Prepare the journal entry to record the repurchase of shares on July 31.

d. Prepare the journal entries to record the sales of shares on September 20 and December 20.

Reference no: EM133169456

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