Answer:
Journal Entry
Date Account Titles and Explanation Debit Credit
Jan 1 Cash $511,875
Bond payable $450,000
Premium on bond payable $61,875
($450,000*13.75%)
(To record issue of bonds at premium)
Answer:
b. Dividends and a credit to Dividends Payable for $824,000
Explanation:
Dividends payable = 2,060,000 shares * $0.40 per share = $824,000
Journal entry on February 16
Dividends $824,000
Dividends payable $824,000
Answer:
Owner owes Builder : B. $2,000.
Explanation:
A Liability is the present obligation of the entity, that arises as a result of past events, the settlement of which is expected to result in a cash outflow from the entity.
Initially, the Owners owes the Builder $,1500
For the fence to be completed on time, an addition of $500 was owed, upon the owner accepting this arrangement.
Thus, the total obligation owing to the Builder is $2,000.
Answer:
The correct option is b. de jure corporation.
Explanation:
A de jure corporation is a business that has fulfilled all the requirements mandated under the law of its state incorporation statute and has had limited liability protection granted to the corporation. De jure means "a matter of law," which validates the corporation as a legal entity.
It is created when steps are taken to incorporate, but not all of the statutes are in compliance. With a de facto corporation, it is not protected if the state challenges it in a "quo warranto" proceeding. It is protected against third parties.
Courts can decide on a finding of de facto if three requirements are met by the corporation:
• A statute must be in existence that allows legal incorporation.
• The corporation has attempted to comply with the statute, which is considered a good faith effort.
• There has been actual use or the exercise of the corporate franchise.
