during the year, the company purchased equipment through the issuance of common stock. the stock had a par value of $20,000, and a fair value of $100,000.

P1. (10 points) Comment on the appropriateness of the accounting procedures (a) During the year, the company purchased equipment through the issuance of common stock. The stock had a par value of S20,000 and a fair va of 100,000. The fair value of the equipment was not easily determinable. The company recorded this transaction as follows. Equipment 20,000 Common Stock 20,000 (b) On December 23, Year 1, an order of $48,000 has been received from a customer for products on hand. This order was shipped on January Year 2. The company made the following entry in Year 1 Accounts Receivable 48,000 Sales Revenue 48.000