Exercise 3

Alou Ltd.'s 10 par value ordinary shares are actively traded at a market price of 15 per share. Alou issues 5,000 shares to purchase land advertised for sale at 81,000. Journalize the issuance of the shares in acquiring the land.

Prepare entries for issuance of shares in a noncash transaction.

Exercise 4

On July 1, Pearl River Industries purchases 500 of its HK$20 par value ordinary shares for the treasury at a cash price of HK$80 per share. On September 1, it sells 350 treasury shares for cash at HK$90 per share. Journalize the treasury share transactions. On October 1, it sells additional 100 TS at HK$70 per share.

Prepare entries for treasury share transactions(to record the purchase and sale of TS).