Answer:
Felix Incorporated
Exchange of Preferred Stock for Land:
Journal Entries:
Debit Land $90,000
Credit Preferred Stock $81,250
Credit Additional Paid-in Capital - Preferred Stock $8,750
To record the issue of 1,250 of $65 par-value preferred stock for land with a fair price of $90,000.
Explanation:
Felix Incorporated will debit Land with the fair price of $90,000 and Credit the Preferred Stock account with $81,250 (1,250 x $65) at par-value. The difference between the fair price of land and the preferred stock at par-value is credited to additional paid-in capital account for preferred stock. Felix Incorporated cannot take into account the current market value of the stock at $75 in its accounting records. The current share price of $75 is for the benefit of investors, and can only serve as basis for Felix Incorporated to decide transactions with potential investors.
If you can market well, you rely less on what you are selling, but more on getting the buyers' interest in the product
Answer:<u><em> $14 million is the amount that should be reported as the net investment in capital assets in the government-wide statement of net position.</em></u>
<u><em>Inventory is not a capital asset also the liability in regards to acquisition of inventory is left out. In this case capital assets are in regards with the roads and equipment. </em></u>
Answer:
A legal person
Explanation:
Limited liability company is a legal entity that is seperate from its owners. The owners of the company are only liable to pay the debts the companies owes to the extent of capital invested.
Also the company is allowed to own property that is not directly owned by the members.
As a legal person Grape Vineyards LLC can hold title to property.
There is no upper limit for members of a limited liability company.
The owners can therefore be distinct legally from the company as regards debts owed or property owned