In
2011, Abbotsford Inc. issued 1,000 common shares for land worth $149,000.
(a)
Prepare Abbotsford’s journal entry to record the transaction.
(b)
Indicate the effect that the transaction has on cash.
(c)
Indicate how the transaction is reported on the statement of cash flows.
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(a)
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Land .....................................
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149,000
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Common Shares..........................
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149,000
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(b)
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No
effect
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(c)
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In the
notes to the financial statements:
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Non-cash
Investing and Financing
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Activities: Purchase of land through
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issuance of common shares
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$149,000
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