On December 2, 2014, Ewell Company Purchases a Piece of Land

question 127

Essay

On December 2, 2014, Ewell Company purchases a piece of land from the original owner. In payment for the land, Ewell Company issues 8,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $400,000. Please provide the journal entry for this transaction.
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Definitions:

Cash Budget

A financial plan that projects future cash flow by estimating incoming cash receipts and outgoing cash payments.

Loans Outstanding

The total amount of borrowed money that is still owed to lenders.

Budgeted Purchases

The estimated amount of purchases a company plans to make in a future period, often part of a budgeting process.

Budgeted Ending Inventory

The estimated value or quantity of inventory that a company plans to have on hand at the end of a financial period.