On April 21, Killarny Enterprises acquired a large tract of land from McSwain Corporation Killarny issued 1,400 shares of its $1 par value common stock to McSwain in exchange for the land Required (a) Prepare the journal entry to record this transaction by Killarny Enterprises, if the companys stoc...

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On April 21, Killarny Enterprises acquired a large tract of land from McSwain Corporation. Killarny issued 1,400

Question:

On April 21, Killarny Enterprises acquired a large tract of land from McSwain Killarny issued 1,400 shares of its $1 to McSwain in exchange for the land.
Required:
(a) Prepare the journal entry to record this transaction by Killarny Enterprises, if the company’s stock is not publicly traded and the land has an appraised value of $110,000.
(b) Assume that on April 20, the Killarny stock traded on the New York Stock Exchange for $75 per share. The land has an appraised value of $110,000.Prepare the appropriate journal entry to record this exchange transaction by Killarny Enterprises.
(c) Suppose, instead, that Killarny sold 1,400 shares of stock on April 20 for $80 cash per share. The company then acquired the land from McSwain on April 21 for its appraised value. Prepare the journal entries for these two transactions by Killarny Enterprises.
(d) Determine the differences between the ﬁnancial statement results in parts (a), (b), and (c). Explain why these differences occurred.
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,...