As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients.
1.Blossom Company is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 4,500 shares of its $19 par value common stock. The owners' asking price for the land was $134,500, and the fair value of the land was $118,000.2.Wildhorse Co. is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 21,000 shares of its $8 par value stock. At the time of the exchange, the land was advertised for sale at $263,500. The stock was selling at $9 per share.
Prepare the journal entries for each of the situations above