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FinnZ [79.3K]
3 years ago
11

When a corporation issues its capital stock in payment for services, the least appropriate basis for recording the transaction i

s the
a. market value of the services received.
b. par value of the shares issued.
c. market value of the shares issued.
d. Any of these provides an appropriate basis for recording the transaction.
Business
1 answer:
Jet001 [13]3 years ago
5 0

Answer:

B.) Par value of the share issued

Explanation:

This transaction just have to follow the rules of issuing stocks for non-cash assets. The rule is to record on the basis of MARKET VALUE of the services received or the MARKET VALUE of the shares issued whichever can be objectively determined.

The <u><em>least appropriate basis</em></u> would be the Par Value of the shares issued since the par value are usually significantly lower than its market value.

Par value are determined from the creation of the company and the company grows and increases its value.

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Why is the separating of recordkeeping from the custody of assets a limitation of an internal control system?
yanalaym [24]

The separating of recordkeeping from the custody of assets a limitation of an internal control system because:

  • In example above, fraud could occur only if the two employees collude (agree to work together to commit fraud)
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  • Employee controlling asset will know if another person is maintaining records or not.
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<h3>What is meant by Internal Control?</h3>
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Happy Maids cleans commercial buildings. In March, Happy Maids started and completed two jobs, Job 1000 and Job 1001. The job co
vodomira [7]

Answer:

C :Job 1000, $1,860; Job 1001, $3,100

Explanation:

The computation of the total cost is shown below:

For Job 1000:

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= $1,200 + 30 × $15 + 30 × $7

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For Job 1001:

= Direct materials + Direct labor hours × wage rate per hour × Direct labor hours × overhead rate per hour

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Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,
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Answer:  Debit Notes Receivable          7,800  

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here,  sales = $7,800 = Debit Notes Receivable  

The entry to record the sales transaction would be

Debit Notes Receivable          7,800  

Sales(to record sales)   7,800

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