Homework1 - Homework # 1 Brief Exercises BE14 - 1 The...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Homework # 1 Brief Exercises BE14 - 1 The corporate form of business organization has some advantages and disadvantages: Advantages Disadvantages Separate legal existence Separation of ownership and management Limited liability of stoskholders Government regulations transferable ownership rights Additional taxes Ability to acquire capital Continuous life Professional managers BE14 - 2 Dec. 31 Income Summary 450,000 Retained Earnings 450,000 (To close Income Summary and transfer net income to retained earnings) BE14 - 3 May 10 Cash 18,000 Common Stock 10,000 Paid-in Capital in Excess of Par Value 8,000 (To record issuance of 1 000 shares of common stock in excess of par) BE14 - 4 June 1 Cash 21,000 Common Stock 3,000 Paid-in Capital in Ecxess of Stated Value 18,000 (To record issue of 3 000 shares of $1 stated value no-par stock) BE14 - 5 Land 80,000 Common Stock 50,000 Paid-in Capital inExcess of Par Value 30,000 (To record issuance of 5 000 shares of $5 par value stock for land) BE14 - 6 Jul. 1 Treasury Stock 4,500 Cash 4,500 (To record purchase of 500 shares of tresury...
View Full Document

Page1 / 6

Homework1 - Homework # 1 Brief Exercises BE14 - 1 The...

This preview shows document pages 1 - 2. Sign up to view the full document.

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