1. On January 1, 2013, The Landing Strip Inc. purchased a 5-acre tract of land with a building thereon. The asking price was $17,500. (8pt)

Payment in full was as follows:

• Cash, $6,822;
• The Landing Strip Inc. common shares, par $5 (market value $20 per share based on several recent transactions on the market) 250 shares, and
• a $5,000 non-interest bearing note payable due December 31, 2016. The current market rate of interest is 12 percent. Allocate 20 percent of the cost to the building.

Required:

Give the entry to record this transaction on January 1, 2013.