Office Equipment was acquired by issuing 300 shares of $6 par value common stock. The stock had a market value of $14 per share.Construction of Building
A building was constructed on land purchased last year at a cost of $150000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows:
To finance construction of the building a $600000 10% construction loan was taken out on Febru-ary 1. The loan was repaid on November 1. The firm had $200000 of other outstanding debt during the year at a borrowing rate of 7%.Required: Record all of the applicable acquisition/construction entries for each of these assets.