Homework Answers
Solution: The Answer is ORGANIZATION COST.
Explanation:
1) Organisation costs are those costs which are incurred by the corporation or company at the time of initial establishment. It includes legal and promotion expenses incurred in the initial stages of setup and running of the corporation.
2) Common shares and Share capital will be debited at the time of treasury stock purchases.So, It is Incorrect.
3) Retained Earnings are debited only when expenses are more than income.So, It is Incorrect.
4) Cash is debited when we receive cash,but here we are paying for legal costs.So, It is Incorrect.
Add Answer to:
Legal costs incurred to get a corporation up and running should be accounted for by debiting:...
The following is a summary of all relevant transactions of Sage Corporation since it was organized...
The following is a summary of all relevant transactions of Sage Corporation since it was organized in 2020. In 2020, 15,300 shares were authorized and 6,900 shares of common stock ($60 par value) were issued at a price of $67. In 2021, 900 shares were issued as a stock dividend when the stock was selling for $70.290 shares of common stock were bought in 2022 at a cost of $74 per share. These 290 shares are still in the company...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On Dec 31, 2018, the company had 50,000 Common Shares and 20,000 $2 cumulative preferred shares outstanding. Contributed Share Capital on that date as per the Balance Sheet is the following: Common Shares: 150,000 Preferred Shares: 140,000 Retained Earnings: 79,250 During 2019, the company performed the following share related transactions. 1. Issued 5,000 common shares for $2.80 each. 2. Issued 1,000 preferred shares in exchange...
19. 19. Share issue costs refer to the costs of obtaining the legal, promotional, and accounting...
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NO EXPLANATION NEEDED, please, just solve everything, would be greatly appreciated (thumbs up)! :) Problem 13-1A...
NO EXPLANATION NEEDED, please, just solve
everything, would be greatly appreciated (thumbs up)!
:)
Problem 13-1A Stockholders' equity transactions and analysis LO P1, A4 Kinkaid Co. was incorporated at the beginning of this year and had a number of transactions. The following journal entries impacted its stockholders' equity during its first year of operations. Credit Debit 290,000 a. General Journal Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 240,000 50,000 b. 180,000 Organization...
Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following...
Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders' equity during its first year of operations. a. Credit General Journal Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, lue, Common Stock Debit 300,000 225,000 75,000 b. SL Organization Expenses Common Stock $25 Par Valve Paid-In Capital in Excess of Par Value, 180,000 al of Par Value, common stock 126,000 on...
How can I get the IS and RE? Problem 13-02A a Fechter Corporation had the following...
How can I get the IS and RE?
Problem 13-02A a Fechter Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par-Common Stock $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 5,000 shares at $8 per share. une 1 Sold 1,000 shares at $12 per share. Sept.1 Sold 2,000 shares at $10 per share. Dec. 1 Sold 1,000...
The following transactions relate to the stockholders' equity transactions of Lindsay Corporation...
The following transactions relate to the stockholders' equity transactions of Lindsay Corporation for 2018, its first year of existence. Articles of incorporation are filed with the state. The state authorized the issuance of 10,000 shares of 6%, $50 par value preferred stock and 200,000 shares of $1 par value common stock. January 28 40,000 shares of common stock are issued for $15 per share. 70,000 shares of common stock are issued in exchange for land and buildings that have a...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On Dec 31, 2018, the company had 50,000 Common Shares and 20,000 $2 cumulative preferred shares outstanding. Contributed Share Capital on that date as per the Balance Sheet is the following: Common Shares: 150,000 Preferred Shares: 140,000 Retained Earnings: 79,250 During 2019, the company performed the following share related transactions. 1. Issued 5,000 common shares for $2.80 each. 2. Issued 1,000 preferred shares in exchange...
On January 5, 2020, Shamrock Corporation received a charter granting the right to issue 5,500 shares...
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Presented below is information related to Stellar Company: 1. The company is granted a charter that...
Presented below is information related to Stellar Company:
1. The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock. 2. 8,000 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $280,000. The board establishes a stated value of $10 a share for the common stock. 3. 5,600 shares of preferred stock are sold...
The following is a summary of all relevant transactions of Sage Corporation since it was organized in 2020. In 2020, 15,300 shares were authorized and 6,900 shares of common stock ($60 par value) were issued at a price of $67. In 2021, 900 shares were issued as a stock dividend when the stock was selling for $70.290 shares of common stock were bought in 2022 at a cost of $74 per share. These 290 shares are still in the company...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On Dec 31, 2018, the company had 50,000 Common Shares and 20,000 $2 cumulative preferred shares outstanding. Contributed Share Capital on that date as per the Balance Sheet is the following: Common Shares: 150,000 Preferred Shares: 140,000 Retained Earnings: 79,250 During 2019, the company performed the following share related transactions. 1. Issued 5,000 common shares for $2.80 each. 2. Issued 1,000 preferred shares in exchange...
NO EXPLANATION NEEDED, please, just solve
everything, would be greatly appreciated (thumbs up)!
:)
Problem 13-1A Stockholders' equity transactions and analysis LO P1, A4 Kinkaid Co. was incorporated at the beginning of this year and had a number of transactions. The following journal entries impacted its stockholders' equity during its first year of operations. Credit Debit 290,000 a. General Journal Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 240,000 50,000 b. 180,000 Organization...
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How can I get the IS and RE?
Problem 13-02A a Fechter Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par-Common Stock $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 5,000 shares at $8 per share. une 1 Sold 1,000 shares at $12 per share. Sept.1 Sold 2,000 shares at $10 per share. Dec. 1 Sold 1,000...
The following transactions relate to the stockholders' equity transactions of Lindsay Corporation for 2018, its first year of existence. Articles of incorporation are filed with the state. The state authorized the issuance of 10,000 shares of 6%, $50 par value preferred stock and 200,000 shares of $1 par value common stock. January 28 40,000 shares of common stock are issued for $15 per share. 70,000 shares of common stock are issued in exchange for land and buildings that have a...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On Dec 31, 2018, the company had 50,000 Common Shares and 20,000 $2 cumulative preferred shares outstanding. Contributed Share Capital on that date as per the Balance Sheet is the following: Common Shares: 150,000 Preferred Shares: 140,000 Retained Earnings: 79,250 During 2019, the company performed the following share related transactions. 1. Issued 5,000 common shares for $2.80 each. 2. Issued 1,000 preferred shares in exchange...
On January 5, 2020, Shamrock Corporation received a charter granting the right to issue 5,500 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 48,400 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 Issued 21,900 shares of common stock at $16 per share. Issued to Sanchez Corp. 3,900 shares of preferred stock for the following assets: equipment with a fair value...
Presented below is information related to Stellar Company:
1. The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock. 2. 8,000 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $280,000. The board establishes a stated value of $10 a share for the common stock. 3. 5,600 shares of preferred stock are sold...
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