Question - Office equipment was acquired by issuing 100 shares of $35 par value common stock. The stock had a market price of $48 per share.
Construction of Building: A building was constructed on land purchased last year at a cost of $660,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows.
Date Payment
2/1 $528,000
6/1 1,584,000
9/1 2,112,000
11/1 440,000
To finance construction of the building, a $2,640,000, 12% construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $880,000 of other outstanding debt during the year at a borrowing rate of 8%.
Record the acquisition of each of these assets.