Answer:
The journal entry for J. Laney. to record this transaction is:
Legal Expenses $13,920 (debit)
Common Stock $2,900 (credit)
Share Premium $11,020 (credit)
Explanation:
The Common Stocks are carried at par value of $1. This means that any price paid in excess of the par value is accounted for in the Share Premium Account.
The Common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.
Share Premium = ($4.80 - $1.00) × 2900 shares
= $3.80 × 2,900
= $11,020
Answer:
c. 0.39
Explanation:
The formula to compute the 2017 cash ratio is shown below:
= (Cash + Short-term Investments) ÷ (Total Current Liabilities)
= (63,500 + $51,000) ÷ (234,000)
= ($114,500) ÷ (234,000)
= 0.39
It shows a ratio between cash + cash equivalent and the current liabilities.
The other information which is given in the question is not relevant. Hence, ignored it
Answer:
$80750
Explanation:
The total cost of $80,750 would be recorded as the amount or rather the cost of equipment. This is because according to GAAP ( Generally accepted accounting principles), all cost involved in acquiring a business asset including sales tax, insurance and so on should be reported in the balance sheet with a book value that is equal to the overall acquisition cost ( which in this case includes sales tax, insurance, installation and testing).
Answer:
A. She needs to acquire funding for her business.
Explanation:
Took the test