On January 1, 2013, The Landing Strip Inc. purchased a 5-acre tract of land with a building thereon. The asking price was $17,500. Payment in full was as follows: Cash, $6,822; The Landing Strip Inc. common shares, par $5 (market value $20 per share based on several recent transactions on the market) 250 shares, and a $5,000 non-interest bearing note payable due December 31, 2016. The current market rate of interest is 12 percent. Allocate 20 percent of the cost to the building.
Give the entry to record this transaction on January 1, 2013.

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The Answer of On January 1, 2013, The Landing Strip Inc. purchased a 5-acre tract of land with a building thereon. The asking price was $17,500. Payment in full was as follows: Cash, $6,822; The Landing Strip Inc. common shares, par $5 (market value $20 per share based on several recent transactions on the market) 250 shares, and a $5,000 non-interest bearing note payable due December 31, 2016. The current market rate of interest is 12 percent. Allocate 20 percent of the cost to the building.
Give the entry to record this transaction on January 1, 2013.

On January 1, 2013, the Landing Strip Inc