In 2010, Leppard Inc. issued 1,000 ordinary shares of $10 par value for land worth $40,000. (a)

Question:

In 2010, Leppard Inc. issued 1,000 ordinary shares of $10 for land worth $40,000.
(a) Prepare Leppard’s journal entry to record the transaction.
(b) Indicate the effect the transaction has on cash.
(c) Indicate how the transaction is reported on the statement of cash flows.

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,...