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On December 2,2017,St

question 105

Essay

On December 2,2017,St.Augustine,Inc.purchases land.In exchange for the land,St.Augustine,Inc.issues 8,000 shares of common stock with $1.00 par value.The land has been appraised at a market value of $400,000.Prepare the journal entry for this transaction.


Definitions:

Land Titles System

A registration system that guarantees title to real property.

State of Title Certificate

A document issued by a governmental land registration office showing the current status of legal ownership, and any encumbrances, liens, or mortgages on a piece of property.

Federal Government

The national government of a federated state, which shares sovereignty with its states or provinces.

Land Title Office

A government office that records the ownership and details of land and property.

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