Determine the effects of common stock on cash


Response to the following problem:

In 2014, Leppard Inc. issued 1,000 shares of $10 par value common stock for land worth $40,000.

(a) Prepare Leppard's journal entry to record the transaction.

(b) Indicate the effect the transaction has on cash.

(c) Indicate how the transaction is reported on the statement of cash flows.

 

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Determine the effects of common stock on cash
Reference No:- TGS02124067

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)