Response to the following :
1. Issuance of Stock for noncash Assets
Tulip Corporation issued 16,000 shares of its $1 par value common stock in exchange for land that had a fair market value of $100,000.
Prepare the journal entries necessary to record the issuance of the stock for the land under each of these conditions:
(1) The stock was selling for $7 per share on the day of the transaction; (2) management attempted to place a value on the common stock but could not do so.
2. Treasury Stock transactions
Prepare the journal entries necessary to record Dao Company's following stock transactions during 2014:
Oct. 1 Purchased 2,000 shares of its own $2 par value common stock for $20 per share, the current market price.
17 Sold 500 shares of treasury stock purchased on October 1 for $25 per share.
21 Sold 800 shares of treasury stock purchased on October 1 for $18 per share.