Warr22e_IM_TM_Ch13 - Transparency Master 13-1...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Transparency Master 13-1 CHARACTERISTICS OF A CORPORATION 1. Separate legal existence 2. Ownership evidenced by shares of stock 3. Ownership is easily transferred through sale of stock 4. Limited liability 5. Owners elect a board of directors to set corporate policies and select officers to manage the corporation 6. Separate taxable entity (leading to double taxation) 7. Earnings distributed in the form of di- vidends
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Transparency Master 13-2 ORGANIZATION COSTS Record the following entry for Hoover Cor- poration. Hoover Corporation was organized early in 2004. Legal costs and other fees asso- ciated with incorporation totaled $3,500.
Background image of page 2
Transparency Master 13-3 ORGANIZATION COSTS Solution Hoover Corporation was organized early in 2004. Legal costs and other fees associated with incorporation totaled $3,500. Organization Expenses. ............. 3,500 Cash. ........................................ 3,500
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Transparency Master 13-4 DISTRIBUTION OF DIVIDENDS—COMMON AND PREFERRED SHAREHOLDERS Belson Corporation Preferred stock is cumulative and nonparticipating. Dividend = $65,000 Preferred Common Total Shareholders Shareholders Distributed Dividends in arrears (5,000 × $5 × 1 year). ................ $25,000 $25,000
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/20/2010 for the course BUSINESS Accounting taught by Professor Ebiohuche during the Spring '10 term at DeVry Manhattan.

Page1 / 14

Warr22e_IM_TM_Ch13 - Transparency Master 13-1...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online