Chapter Thirteen Challenge Exercise 13-1 Expands on: 13-6 LO: 2 As an auditor for the CPA firm of Yaz and Stremski, you encounter the following situations in auditing different clients. 1. Arnez Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,000 shares of its $20 par value common stock. The owners' asking price for the land was $150,000, and the fair value of the land was $125,000. 2. Ball Corporation is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 20,000 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $270,000. The stock was selling at $12 per share. Instructions: (a) Prepare the journal entries for each of the situations above. (b) What is the general rule followed when common stock is issued for services or noncash assets