Prepare the journal entries for each of the situations below.

1. Tape Corporation is a closely held corporation whose stock is not publicly traded. On September 5, the corporation acquired equipment by issuing 7,000 shares of its $15 par value common stock. The owners asking price for the equipment was $133,000, and the fair market value of the equipment was $125,000.

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Corporations: Organization and Capital Stock Transactions Principles of Financial Accounting - II

2. Drago Corporation is a publicly held corporation whose common stock is traded on the securities markets. On April 1, it acquired equipment by issuing 17,000 shares of its $5 par value stock. At the time of the exchange, the land was advertised for sale at $310,000.The stock was selling at $17 per share.