In 2017, Metlock Inc. issued 700 shares of $10 par value common stock for land w

Question

In 2017, Metlock Inc. issued 700 shares of $10 par value common stock for land worth $38,600.

(a) Prepare Metlock’s journal entry to record the transaction.

In 2017, Metlock Inc. issued 700 shares of $10 par value common stock for land worth $38,600 (a) Prepare Metlock'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 select "No entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Land 38600 Paid-in Capital in Excess of Par-Common Stock Common Stock 31600 (b) Indicate the effect the transaction has on cash . No Effect (c) Indicate how the transaction is reported on the statement of cash flows Metlock Inc. Statement of Cash Flows (Partial) December 31, 2017 Cash Flows from Investing Activities Issuance of Common Stock 7000

Explanation / Answer

a. Journal Entry

b. Indicate the effect the transaction has on cash - No-Effect.

c. This transaction will not be reported in Cash flow statement because there is no involvement of cash in this transaction.

Account Titles and Explanation Debit Credit Land $38,600 Paid in capital in Excess of Par -common stock $31,600 Common Stock $7,000

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