Bruce Brown, a wealthy investor, exchanged a plot of land that originally cost him $20,000 for 1,000 shares of $10 par common stock issued to him by Dunn Corp On the same date, Dunn Corp issued an additional 1,500 shares of stock to Brown for $35 per share Required a What was the value of the land ...

a 1000 shares x 35 market value per share of stock 35000 ...

Bruce Brown, a wealthy investor, exchanged a plot of land that originally cost him $20,000 for 1,000

Question:

Bruce Brown, a wealthy investor, exchanged a plot of land that originally cost him $20,000 for 1,000 shares of $10 par issued to him by Dunn Corp. On the same date, Dunn Corp. issued an additional 1,500 shares of stock to Brown for $35 per share.

Required
a. What was the value of the land at the date of the stock issue?
b. Show the effect of the two stock issues on Dunn€™s books in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by the event.

c. Prepare the journal entries to record thesetransactions.

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...