The Purchase of Land for a Combination of Cash and Issuance

question 51

Multiple Choice

The purchase of land for a combination of cash and issuance of shares would require which of the following entries?

• A)Dr.Land, Cr.Common shares, Cr.Cash
• B)Dr.Cash, Dr.Common shares, Cr.Land
• C)Dr.Land, Cr.Cash, Dr.Common Shares
• D)Dr.Cash, Cr.Land, Cr.Common shares

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Definitions:

Value

Under the Code (except for negotiable instruments and bank collections), generally any consideration sufficient to support a simple contract.

Qualified Indorsement

An endorsement on a negotiable instrument that limits the liability of the endorser or specifies particular conditions for the endorsement's validity.

Liability

A legal responsibility or obligation, often involving financial compensation, that arises from actions or agreements.

Payable to Cash

A term indicating that a check or draft is to be paid to the bearer or holder, making it easily transferable.