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Alex777 [14]
3 years ago
13

Richard Redden, the sole stockholder, contributed $71,000 in cash and land worth $132,000 in exchange for common stock to open a

new business, RR Consulting. Which of the following general journal entries will RR Consulting make to record this transaction?
A. Debit Assets $203,000; credit Common Stock $203,000.
B. Debit Cash and Land, $203,000; credit Common Stock $203,000.
C. Debit cash $71,000; debit land $132,000; credit Common Stock $203,000.
D. Debit Common Stock $203,000; credit cash $71,000; credit Land $132,000.
E. Debit Common Stock $203,000; credit Assets $203,000.
Business
2 answers:
Aloiza [94]3 years ago
7 0

Answer: C. Debit cash $71,000; debit land $132,000; credit Common Stock $203,000.

Explanation:

From the question, we are informed that Richard Redden, the sole stockholder, contributed $71,000 in cash and land worth $132,000 in exchange for common stock to open a new business, RR Consulting.

The journal entries will RR Consulting make to record this transaction will be:

Debit cash $71,000; debit land $132,000; credit Common Stock $203,000.

Neko [114]3 years ago
7 0

Answer:

C. Debit cash $71,000; debit land $132,000; credit Common Stock $203,000.

Explanation:

Recognize the Assets of Cash at $71,000, the Assets of Land at $132,000 and an Equity element - Common Stock at $203,000.

<u>The journal entry will be as follows :</u>

Cash $71,000 (debit)

Land $132,000 (debit)

Common Stock $203,000 (credit)

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8 0
3 years ago
Brewery Company’s debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Cr
aivan3 [116]

Answer:

mechanic's lien

Explanation:

From the question we are informed about how Brewery Company’s debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Credit asks the court to order the seizure of Brewery’s property. In this case, This is a request for mechanic's lien.

Mechanic's lien can be regarded as security interest as regards title of a particular property, this is for the gains of everyone that are involved in supplier of labor as well as materials for the improvement of the property. The lien covers the real property as well as personal property. Mechanic's lien can be regarded as guarantee of payment for contractors as well as construction firms that are involved in building or repairing of structures.

5 0
3 years ago
Your company is estimated to make dividends payments of $2.2 next year, $3.9 the year after, and $4.8 in the year after that. Th
marysya [2.9K]

Answer:

$63.01

Explanation:

The share price today is the present value of expected future cash flows which in this case are the expected future dividends and the terminal value of dividends beyond the 3rd year.

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Year 3 dividend =$4.8

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Present value of a future cash flow=cash flow/(1+required rate of return)^n

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8 0
3 years ago
Using the gross method, purchase discounts lost are:
Alla [95]

Answer:

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Explanation:

The adjustment of the purchase discount lost under the gross method is included in the purchase amount. If the payment is made within the discount period, then the discount is applicable otherwise not, if the payment is not made within the discount period.

The journal entry is shown below:

Purchase A/c Dr XXXXX

      To Account payable A/c XXXXX

(Being the goods are purchased on credit)

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