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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...
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This note was uploaded on 09/20/2011 for the course ACCT 221 taught by Professor Prof during the Spring '10 term at Alabama State University.
- Spring '10