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3 years ago

Prepare the issuer's journal entry for each of the following separate transactions.

Business

1 answer:

jeka57 [31]3 years ago

3 0

Answer:

March 1

Debit : Cash $318,500

Credit : Common Stock $198,000

Credit : Excess of Par $120,500

<em>Being Issue of Par value Shares for $318,500 cash</em>

April 1

Debit : Cash $84,000

Credit : Common Stock $84,000

<em>Being Issue of no Par value shares for $84,000 cash</em>

April 6

Debit : Inventory $53,000

Debit : Note Receivable $103,000

Credit : Common Stock $68,000

Credit : Excess of Par $88,000

<em>Being Issue of Par value Shares for Inventory and Note Receivable</em>

Explanation:

Note: We are instructed to prepare journals from the issuer`s point of view and this needs to be followed.

When shares are issued, the Common Stock increases :

a. For par value Common Stocks, any price paid in excess of par value is accounted in Excess of Par Reserve.

b. For no par value shares, there is no Excess of Par Reserve, we simply record the increase in Common Stock at the price paid for.

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In a Chapter 11 bankruptcy, a class of creditors is considered to have accepted the bankruptcy plan when: Group of answer choice

anygoal [31]

Answer:

In a Chapter 11 bankruptcy, a class of creditors is considered to have accepted the bankruptcy plan when:

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Explanation:

In a Chapter 7 bankruptcy, the business assets are liquidated to pay the creditors. In a Chapter 11 bankruptcy, the business assets are not liquidated. Instead, the business is refinanced as the assets and debts are reorganized, making it possible for the continued existence of the business. This is the reason the agreement of the creditors are usually paramount in the decision to undergo a Chapter 11 bankruptcy, unlike a Chapter 7 bankruptcy.

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3 years ago

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Answer: A. limited liability company.

Explanation:

A Limited Liability Company (LLC) is a type of company that is operated and taxed like a partnership for instance, profits that flow to the partners are taxed on the partner's income but not on the firm to prevent double taxation. This is called Flow-Through Taxation.

They operate with limited Liability for the owners because the owners are only personally liable for the debts and liabilities the company has up until the capital they invested. Anything past this and they cannot be held liable.

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Answer:

d. cost-less will go out of business, and durable will gain higher power over its customers.

Explanation:

Durable ceramics, inc will only reduce its prices if this is to its advantage. We live in a capitalist world where companies make decisions based on their own benefits. In this case, in order for Durable ceramics, inc to lower its prices and have no losses, it would expand its sales. In this way, Durable ceramics, inc would be able to capture customers from its competitors, and could make them go bankrupt.

Thus, we can conclude that if Durable ceramics, inc reduced its prices, Cost-Less would go out of business and Durable would gain greater power over its customers.

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3 years ago

if there is a budget deficit during the biennium, money can be used from the economic stabilization fund

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<h3>What is the meaning of the Senate?</h3>

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Learn more about The Senate here:

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