Reference no: EM131581966

Question - On July 11, American Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 5,000 shares of $5 par common stock with a current market price of $32.

Journalize the entry to record the transaction. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS - American Lift Corporation General Ledger

ASSETS

• 110Cash
• 120 Accounts Receivable
• 131 Notes Receivable
• 132 Interest Receivable
• 141 Merchandise Inventory
• 145 Office Supplies
• 151 Prepaid Insurance
• 181 Land
• 193 Equipment
• 194 Accumulated Depreciation-Equipment

LIABILITIES

• 210 Accounts Payable
• 221 Notes Payable
• 226 Interest Payable
• 231 Cash Dividends Payable
• 236 Stock Dividends Distributable
• 241 Salaries Payable
• 261 Mortgage Note Payable

EQUITY

• 311 Common Stock
• 312 Paid-In Capital in Excess of Par-Common Stock
• 315 Treasury Stock
• 321 Preferred Stock
• 322 Paid-In Capital in Excess of Par-Preferred Stock
• 331 Paid-In Capital from Sale of Treasury Stock
• 340 Retained Earnings
• 351 Cash Dividends
• 352 Stock Dividends
• 390 Income Summary

REVENUE

• 410 Sales
• 610 Interest Revenue

EXPENSES

• 510 Cost of Merchandise Sold
• 515 Credit Card Expense
• 520 Salaries Expense
• 531 Advertising Expense
• 532 Delivery Expense
• 533 Selling Expenses
• 534 Rent Expense
• 535 Insurance Expense
• 536 Office Supplies Expense
• 537 Organizational Expenses
• 562 Depreciation Expense-Equipment
• 590 Miscellaneous Expense
• 710 Interest Expense