Question

Land appraised at OMR 110,000 is purchased by issuing 100,000 OMR 1.000 par value ordinary shares....

Land appraised at OMR 110,000 is purchased by issuing 100,000 OMR 1.000 par value ordinary shares. The market price of the shares at the time of the exchange, based on active trading in the securities market, is OMR 1.750 per share. Should the land be recorded at OMR100,000, OMR 110,000, or OMR 175,000? Explain it and show the necessary journal entry.    

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Brief Exercise 10-07 Sarasota Company obtained land by issuing 3,400 shares of its $12 par value...
Brief Exercise 10-07 Sarasota Company obtained land by issuing 3,400 shares of its $12 par value common stock. The land was recently appraised at $147,720. The common stock is actively traded at $42 per share. Prepare the journal entry to record the acquisition of the land.
Assume that 2,000 shares of common stock with a par value of $12 and a market...
Assume that 2,000 shares of common stock with a par value of $12 and a market price of $16 per share are issued in exchange for land with a fair market value of $32,000. a. Prepare the journal entry to record the transaction. b. If the land's appraised fair market value were $33,000, what would be the correct entry to record the transaction? c. Prepare the necessary journal entry, assuming the same facts as in (b), except that the stock...
Luz, Inc. purchases 1,000 shares of its own previously issued OMR 5 par value ordinary shares...
Luz, Inc. purchases 1,000 shares of its own previously issued OMR 5 par value ordinary shares for OMR 9,000. On a later date, the purchased treasury shares are resold by Luz Inc., for OMR 13,000.   What do the above transactions affect net income, total assets, retained earnings, and total equity, and show overall net effect amount?
29,000 shares reacquired by Sandhill Corporation for $57 per share were exchanged for undeveloped land that...
29,000 shares reacquired by Sandhill Corporation for $57 per share were exchanged for undeveloped land that has an appraised value of $1,480,000. At the time of the exchange, the common stock was trading at $63 per share on an organized exchange. (a) Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method.
Ryuji Corporation is authorized to issue 53,000 shares of $5 par value common stock. During 2020,...
Ryuji Corporation is authorized to issue 53,000 shares of $5 par value common stock. During 2020, Blue took part in the following selected transactions. 1. Issued 5,100 shares of stock at $49 per share, less costs related to the issuance of the stock totaling $6,800. 2. Issued 1,100 shares of stock for land appraised at $53,000. The stock was actively traded on a national stock exchange at approximately $50 per share on the date of issuance. 3. Purchased 480 shares...
Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2017,...
Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2017, Overland Corporation took part in the following selected transactions. ? Issued 55,000 shares of stock at $76 per share, less costs related to the issuance of the stock totaling $27,000. ? Issued 10,000 shares of stock for land appraised at $815,000. The stock was actively traded on a national stock exchange at approximately $78 per share on the date of issuance. ? Purchased 6,000...
On April 7, the Moore Company issued 5,000 shares of $50 par value preferred stock at...
On April 7, the Moore Company issued 5,000 shares of $50 par value preferred stock at $106 per share. Please write the journal entry: On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current fair-market price of $70 per share. Please write the journal entry:
Exercise 15-6 Flounder Corporation is authorized to issue 50,000 shares of $5 par value common stock....
Exercise 15-6 Flounder Corporation is authorized to issue 50,000 shares of $5 par value common stock. During 2017, Flounder took part in the following selected transactions. 1. Issued 4,600 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $6,500. 2. Issued 1,000 shares of stock for land appraised at $50,000. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance. 3. Purchased...
Refer to the following transactions: 1. Issued 540 shares of $80 par value preferred stock at...
Refer to the following transactions: 1. Issued 540 shares of $80 par value preferred stock at par. 2. Issued 640 shares of $80 par value preferred stock in exchange for land that had an appraised value of $81,600. 3. Issued 19,000 shares of $4 par value common stock for $10 per share. 4. Purchased 4,750 shares of common stock for the treasury at $10 per share. 5. Sold 1,900 shares of the treasury stock purchased in transaction d for $12...
Refer to the following transactions. Sold 4,400 shares of $44 par value 7% preferred stock at...
Refer to the following transactions. Sold 4,400 shares of $44 par value 7% preferred stock at par. Declared the annual dividend on the preferred stock. Purchased 550 shares of preferred stock for the treasury at $53 per share. Issued 1,500 shares of $2 par value common stock in exchange for land valued at $116,000. Sold 262 shares of the treasury stock purchased in transaction c for $57 per share. Split the common stock 2-for-1. Prepare the journal entries to record...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT