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...

1 Land 110000 Common Stock 5000 X 20 10000 ...

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

Question:

As an auditor for the CPA firm of Agler and Carl, you encounter the following situations in auditing different clients.
1. Desi is a closely held whose stock is not publicly traded. On December 5, the acquired land by issuing 5,000 shares of its $20 . The owners’ asking price for the land was $120,000, and the fair market value of the land was $110,000.
2. Lucille is a publicly held whose is traded on the securities markets. On June 1, it acquired land by issuing 20,000 shares of its $10 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.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...