Question - On July 11, American Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 5,000 shares of $5 par common stock with a current market price of $32.
Journalize the entry to record the transaction. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS - American Lift Corporation General Ledger
ASSETS
- 110Cash
- 120 Accounts Receivable
- 131 Notes Receivable
- 132 Interest Receivable
- 141 Merchandise Inventory
- 145 Office Supplies
- 151 Prepaid Insurance
- 181 Land
- 193 Equipment
- 194 Accumulated Depreciation-Equipment
LIABILITIES
- 210 Accounts Payable
- 221 Notes Payable
- 226 Interest Payable
- 231 Cash Dividends Payable
- 236 Stock Dividends Distributable
- 241 Salaries Payable
- 261 Mortgage Note Payable
EQUITY
- 311 Common Stock
- 312 Paid-In Capital in Excess of Par-Common Stock
- 315 Treasury Stock
- 321 Preferred Stock
- 322 Paid-In Capital in Excess of Par-Preferred Stock
- 331 Paid-In Capital from Sale of Treasury Stock
- 340 Retained Earnings
- 351 Cash Dividends
- 352 Stock Dividends
- 390 Income Summary
REVENUE
- 410 Sales
- 610 Interest Revenue
EXPENSES
- 510 Cost of Merchandise Sold
- 515 Credit Card Expense
- 520 Salaries Expense
- 531 Advertising Expense
- 532 Delivery Expense
- 533 Selling Expenses
- 534 Rent Expense
- 535 Insurance Expense
- 536 Office Supplies Expense
- 537 Organizational Expenses
- 562 Depreciation Expense-Equipment
- 590 Miscellaneous Expense
- 710 Interest Expense