Chapter 8 Question 5

Issuing Stock for Assets other than Cash On August 7, Level Up Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 10,000 shares of $5 par Common stock with a current market price of $7. Illustrate the effect on the accounts and financial statements of the purchase of the land. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Balance Sheet Assets Liabilities + Stockholders' Equity + Land = + Aug. 7. Statement of Cash Flows Income Statement