Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on august 17, 2021, gringotts corporation issued 3

On August 17, 2021, Gringotts Corporation issued 3,000 shares of its no-par common stock in...

90.2K

Verified Solution

Question

Accounting

On August 17, 2021, Gringotts Corporation issued 3,000 shares of its no-par common stock in exchange for a patent. The market price of the common stock was $38 per share on . Gringotts also received a tract of land from the City of London as an enticement to build a new bank on the site. The land had a fair value of $500,000 and Gringotts was required to pay only $210,000 to secure title to the land. Prepare the journal entries to record the transactions.

1. Record the issue of 5,000 shares of its no-par common stock in exchange for a patent.

2. Record the receipt of land as an enticement which had a fair value of $510,000 and Ellis was required to pay only $200,000 to secure title to the land

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students