Question: Question 38 (2 points) Saved Forest Construction Ltd. issued 5,000 common shares in exchange for a parcel of land on January 27. The shares were

Question 38 (2 points) Saved Forest Construction Ltd. issued 5,000 common shares in exchange for a parcel of land on January 27. The shares were trading at $3.50 per share and the fair value of land was $20,000 on the date of the acquisition. The assessed value of the land for the property tax purpose is $15,000. The journal entry to record the transaction would include a debit Land $15,000 credit Common Shares $ 17,500. credit Common Shares $20,000 debit Loss on Land Acquisition $5,000 Previous Page Next Page Page 38 of 62

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Problem 13.18 and Exhibit 13.6 in Chapter 13 present selected hypothetical data from projected financial statements for Steak 'n Shake for Year +1 to Year +11. The amounts for Year +11 reflect a...

Forest Construction Ltd. issued 5,000 common shares in exchange for a parcel of land on January 27. The shares were trading at $3.50 per share and the fair value of land was $20,000 on the date of...

Nathan Ltd. purchased factory equipment for $200,000, and estimated that the equipment will have a $20,000 residual value at the end of its estimated 5-year useful life. If Nathan Ltd uses the double...

Forest Construction Ltd. issued 5,000 common shares in exchange for a parcel of land on January 27. The shares were trading at $3.50 per share and the fair value of land was $20,000 on the date of...

Question 1,2,3 Question 1: Consolidation On 1 July 2015, Andy Ltd acquired all the issued shares of Claire Ltd (cum div). Andy Ltd paid $60 000 in cash and 20 000 shares in Andy Ltd valued at $2 per...

Please have a look at the question in the attachment provided. The answer is also attached. I want to know how each of the entries were calculated. please provide explanation and calculation for all...

Please have a look at the question in the attachment provided. The answer is also attached. I want to know how each of the entries were calculated. please show calculation for all the entries in the...

Investment in Equity Securities and Business Combinations Weight: 1 0 % Due: Class 4 3 8 Marks Overview Covers Chapters 2 ( Investment in Equity Securities ) and Chapter 3 ( Business Combinations )...

Question 41 (2 points) The following totals for the month of April were taken from the payroll register of Branson Corp.: Gross salaries. $26,850 CPP withheld. 1,330 Employee income taxes...

Mr. Bhandari purchased a car for Rs. 50,000, making a down payment of Rs. 10,000 and signing a Rs. 40,000 bill payable due in 60 days. As a result of this transaction A B C D Total assets increased...

Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2014. The lease is for an 10-year period and requires equal annual payments of $34,177 at the beginning of...

Doug sells Nina equipment under an arrangement whereby Doug recelves cash on January 1 , 2 0 2 4 and del of the equipment occurs, Doug will record a journal entry that includes: credit to deferred...

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Explain why each of these statements is not an effective way to convey the negative message: (Objective 4) a. I am sorry I must refuse your request. b. Therefore, following company policy seems to be...

You have been invited to speak at a campaign kick-off reception for Bob Baffle, a candidate for mayor in your city. Bob is a friend of yours, and you plan to support his candidacy. However, the date...

You own Clean Mist Carpets, a company that uses a chemical process for cleaning carpets and removing stains.You do not guarantee success but have a good reputation for stain removal. Mr. and Mrs....