Prepare Entries to Record the Following Transactions for Maine Corp

question 10

Essay

Prepare entries to record the following transactions for Maine Corp.:
(a)Issued 2,000 shares of $10 par common stock at $72 for cash.
(b)Issued 2,500 shares of common stock in exchange for land with a fair market price of $130,000.
(c)Purchased 400 shares of treasury stock at $70.
(d)Sold the 400 shares of treasury stock purchased in
(c) at $76.

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Definitions:

Taconic Orogeny

An early Paleozoic orogeny that occurred in the northern Appalachians and is interpreted to represent a collision between an island arc and North America.

Acadian Orogeny

A middle Paleozoic mountain-building event in eastern North America; occurred when a series of landmasses, referred to as Avalonia, collided with the eastern coast of North America.

Seafloor Spreading

The process by which new oceanic crust is formed as magma rises to the surface at mid-ocean ridges and solidifies, pushing older crust away from the ridge.

Accretionary Prism

A wedge-shaped mass of sediment and rock scraped off the top of a downgoing tectonic plate at a convergent plate boundary, often leading to the formation of new land.