Question: DE13-9 This exercise shows the similarity and the difference between two ways to acquire plant assets. Case A-Issue stock and buy the assets in separate

DE13-9 This exercise shows the similarity and the difference between two ways to acquire plant assets. Case A-Issue stock and buy the assets in separate transactions: Avisa Machines, Inc., issued 10,000 shares of its $10 par common stock for cash of $700.000. In a separate transaction. Avisa Machines purchased a warehouse building for $480,000 and equipment for $220,000. Journalize the two transactions. Case B-Issue stock to acquire the assets: Avisa Machines issued 10,000 shares of its $10 par common stock to acquire a ware- house building valued at $480.000 and equipment worth $220.000. Journalize this transaction. Compare the balances in all accounts after making both sets of entries. Are the account bal- ances similar or different?

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