The following transactions of Weber Company occurred during 2016:
1. The company acquired a tract of land in exchange for 1,000 shares of $ 10 par value common stock. The stock was traded on the New York Stock Exchange at $ 24 on the date of exchange. The land had a book value on the selling company’s records of $ 5,000, and it was believed to be worth “ anything up to $ 30,000.”
2. An engine on a truck was replaced. The truck originally cost $ 10,000 3 years ago and was being depreciated at $ 2,000 per year. The engine cost $ 1,000 to replace.
3. The company acquired a tract of land that was believed to have mineral deposits by issuing 500 shares of preferred stock of $ 50 par value. The preferred stock was rarely traded. The last transaction was 2 months earlier, when 50 shares were sold at $ 75 per share. The owner of the land was willing to accept cash of $ 55,000, and an appraisal had shown a value of $ 60,000.
4. The company purchased a machine with a list price of $ 8,500 by issuing a 2- year, $ 10,000 non- interest- bearing note when the market rate of interest was 10%.
Required:
Prepare journal entries to record the preceding events.