Question

Can someone help with #1, 2, 5, 6?

OEDD DEODMUHDEVIVOR Exercises/Problems 1. Stockholders' Equity. The owners of a new venture have decided to organize as a corporation. The ini. tial equity investment is valued at $100,000, reflecting contributions of the entrepreneur and her family and friends. One hundred thousand shares of stock were initially issued. A. What dollar amount would initially be recorded in the common stock account? B. If a par value on the common stock were set at $0.01 per share, show how the initial equity invest ment would be recorded.

Answer 1

Answer-1(A):

Common Stock (Initial Investment) = $100,000

Answer-1(B):

Common stock $1,000 (100,000 shares, $0.01 each)

Additional paid-in capital $99,000

Total stockholder's equity $100,000

Answer-1(C):

Common stock $1,200 (120,000 shares, $0.01 each)

Additional paid-in capital $198,800

Total stockholder's equity $200,000

Note: It is assumed that par value is $.01 per share

Answer-1(D):

Common stock $1,200

Additional paid-in capital $198,800

Retained earnings   -$80,000

Total stockholder's equity $120,000

Answer-2(A):

Cost of Production Schedule: Price per unit Month 1 100 Production (units) Production costs: Raw material Direct labour cost Total costs 40 30 70 $ 4,000 3000 $ 7,000 Cost of Goods Sold Schedule: Month 1 Sales (units) 90 Cost @$70 per unit $ 6,300 Inventories Schedule: Month 1 $o Beginning finished goods Production during the month: Raw material Direct labour cost Total Less: Cost of goods sold Ending finished goods 4,000 3,000 7,000 6,300 700

Answer-2(B):

Cost of Production Schedule: Price per unit Month 2 Production (units) 110 Production costs: Raw material $ 40 $ 4,400 Direct labour cost 30 3300 Total costs $ 70 $ 7,700 Cost of Goods Sold Schedule: Month 2 Sales (units) 115 Cost @$70 per unit $ 8,050 Inventories Schedule: Month 2 $700 Beginning finished goods Production during the month: Raw material Direct labour cost Total Less: Cost of goods sold Ending finished goods 4,400 3,300 8,400 8,050 350 $

Please ask the remaining parts in a separate question. Thank you.