E12.7 (LO 2) As an auditor for the firm of Gratis and Goode, you encounter the following situations in auditing different clients. 1. JR SpA is a closely held corporation whose shares are not publicly traded. On December 5, the corpo ration acquired land by issuing 5,000 10 par value ordinary shares. The owners' asking price for the land was 138,000, and the fair value of the land was 124,000. 2. Novak A/S is a publicly held corporation whose ordinary shares are traded on the securities markets. On June 1, it acquired land by issuing 20,000 10 par value ordinary shares. At the time of the exchange, the land was advertised for sale at 250,000. The shares were selling at 11 per share. E12.7 Instructions Prepare the journal entries for each of the situations above