Answer:
From Cody's stock basis
$4,500, -$4,500, $7,500
Explanation:
Stock basis is original value of stock plus adjusted basis. The default distribution ordering rule enables to distribute income and expense. Cody's has $20,000 in his stock and Holbrook has $2,500 AEP before distribution.The Cody's stock basis after distribution will be affected. Cody's stock basis will be $4,500, -$4,500 and $7,500. The distribution of account affect on stock basis after the distribution.
Below is the <span>usual order of accounts in the general ledger:
assetsliabilitiesStockholders' equityrevenuesexpenses
A general ledger or bookkeeping record is a record or report that contains account outlines for accounts utilized by an organization. At the end of the day, a record is a record that subtle elements all business records and record movement amid a period.</span>
Answer:
A) Debit to Additional Paid-In Capital for $14,000
Explanation:
When a company sells or rebuys stock it must record the transaction at par value in the Common Stock account. Any additional money received or paid in excess of par value has to be recorded in the Additional Paid-In Capital account.
In this case since the company paid an extra $1,400 for 1,000 shares, that amount has to be debited from the Additional Paid-In Capital account. Since this account is an asset account and it is decreasing, it has to be debited.
Answer:
c. Neither Gabriella nor Juanita will recognize gain on the transfer.
Explanation:
This is because gabriella transfers cash of 50,000 and does not earn any gain on it, so no gain is recognized.
Answer:
Bourne Inc.
Journal entries
Date Account Name Debit Credit
1-Dec Supplies $2,000
Accounts Payable $2,000
1-Dec Cash $6,000
Deferred Revenue $6,000
1-Dec Land $40,000
Notes Payable $40,000
15-Dec Accounts Payable $2,000
Cash $2,000
Adjusting entries
Date Account Name Debit Credit
31-Dec Supplies expense $1,900
($700 + $2,000 - $800)
Supplies $1,900
31-Dec Deferred Revenue $1,000
($6,000/6)
Service Revenue $1,000
31-Dec Interest expense $400
($40,000*12%* 1/12)
Interest Payable $400