Brief Exercise 2312 In 2017 Culver Inc issued 700 shares of

Brief Exercise 23-12 In 2017, Culver Inc. issued 700 shares of $10 par value common stock for land worth $42,900 (a) Prepare Culver\'s journal entry to record the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No entry\" for the account titles and enter O for the amounts) Acceunt Titis and Explanation (b) Indicate the effect the transaction has on cash. (c) Indicate how the transaction is reported on the statement of cash flows Culver Inc. Statement of Cash Flows (Partial) Click if you would like to Show Work for this question:ShewWork

Solution

Date/S.N. Account title & Explanation Debit Credit Amount in $ Amount in $ Requirement 1 2017 Land 42900 Common stock at par 7000 Paid in capital in excess of par 35900 To record the issuance of commons stock for land Requirement 2 &3 No cash is involved in the above transaction. So, there will be no effect, the transaction has on cash and also nothing will be reported on the statement of cash flows. However, disclosure will have to be made below the statement of cash flow of above transaction.