Juke Joint Ltd., a private company, began operations on March 12 by issuing 5,000 common shares for

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Juke Joint Ltd., a private company, began operations on March 12 by issuing 5,000 common shares for $20 cash per share. On September 10, the company issued 500 common shares in exchange for equipment with an appraised value of $9,500.

(a) Assuming the company uses ASPE, prepare a journal entry to record the September 10 transaction and provide a rationale for the value.

(b) How might your answer change if Juke Joint was a public company?

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Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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Question Posted: Mar 30, 2017 12:33 PM

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Juke Joint Ltd., a private company, began operations on March 12 by issuing 5,000 common shares for

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a Sep 10 Equipment 9500 Common Shares 9500 The fair value of the equipment received has ...View the full answer

Accounting Principles Part 3

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