similar occupations in different industries require similar skills.
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Answer:
Journal Entry to be recorded
DR. Land $475,000
Cr. Common stock $312,500
Cr. Add-in-capital common stock $162,500
Explanation:
Number of Shares = 12,500 shares
Share Market price = $38
Share Par Value = $25
Total value of property to be recorded= 12,500 x $38 = $475,000
Common stock value at par = 12,500 x $25 = $312,500
Add-in-Capital common stock value = $475,000 - $312,500 = $162,500
Property will be recorded as the total value of exchange which is $475,000. On other other hand the common stock value will be recorded in two parts common stock at par value and add-in-capital common stock over par value.
Answer:
the bad debt expense is $6,830
Explanation:
The computation of the bad debt expense is shown below:
= Estimated uncollectible amount + debit balance of allowance for doubtful accounts
= $6,300 + $530
= $6,830
Hence, the bad debt expense is $6,830
We simply added the above amount as it represent the bad debt amount
The same is to be considered
