Dakota Equipment,Inc issued 4,000 shares of its $1 par value common stock for $20 per share on January 1,2011.On the same day,the company purchased a piece of land costing $10,000 and a building costing $40,000.The yearly depreciation on the building is $2,000.
Required:
Prepare the general journal entries to record the stock issue and the purchase of the land and building on January 1 and the depreciation expense on December 31,2011 (assuming that no adjusting entries were made during the year).

Question

Dakota Equipment,Inc issued 4,000 shares of its $1 par value common stock for $20 per share on January 1,2011.On the same day,the company purchased a piece of land costing $10,000 and a building costing $40,000.The yearly depreciation on the building is $2,000.
Required:
 Prepare the general journal entries to record the stock issue and the purchase of the land and building on January 1 and the depreciation expense on December 31,2011 (assuming that no adjusting entries were made during the year).

Quizplus · Accepted Answer

The Answer of Dakota Equipment,Inc issued 4,000 shares of its $1 par value common stock for $20 per share on January 1,2011.On the same day,the company purchased a piece of land costing $10,000 and a building costing $40,000.The yearly depreciation on the building is $2,000.
Required:
 Prepare the general journal entries to record the stock issue and the purchase of the land and building on January 1 and the depreciation expense on December 31,2011 (assuming that no adjusting entries were made during the year).

Dakota Equipment,Inc Issued 4,000 Shares of Its $1 Par Value