Global Publishing Inc. was recently organized. The company issued common shares to a lawyer who provided legal services of $23,000 to help organize the corporation. Global also issued common shares to an inventor in exchange for his patent with a fair value of $100,000. In addition, Global received cash both for the issuance of 5,500 of its preferred shares at $155 per share and for the issuance of 26,000 common shares at $28 per share. During the first year of operations, Global earned net income of $70,000 and declared a cash dividend of $35,000. Without making journal entries, determine the total share capital created by these transactions. Share capital consists of: C
Q: ed company operates in perfect markets (no taxes, no bankruptcy costs) and has expected operating…
A: Market Value - Market value, as determined by market participants, is the amount that an asset or a…
Q: Company issued a $1.185 million bond that matures in five years. The bond has a 6 percent coupon…
A: Answer : Face value of bonds = $1,185,000 Annual coupon rate = 6% Semiannual coupon rate= 3%…
Q: When services are delivered by performing more than one act, revenue should be recognized as the…
A: Revenue is the amount which is earned by the entity and it is recorded in the income statement. It…
Q: Lafayette company has no short term investments
A: short term investment are said to be the investment which have less than 1 year 10 years so it is…
Q: RRSP Marsha had the following income in 2020and 2021 Employment income Business income Interest…
A: The RRSP deduction limit is determined with respect to the lower of 18% of total income or the…
Q: Please help what is financial ratio explain with examples
A: The financial ratio is used to compare the financial health of one business organization to those…
Q: Evaluate the criteria for classification of the lease by the lessor, and describe the nature of the…
A: Operating Lease : Operating lease is a lease which is not a finance lease. Finance Lease: If the…
Q: 4. At the end of its first year of operations, December 31, 2025, Swifty Inc. reported the following…
A: The accounts receivable is the amount that is received in the future. The amount of the accounts…
Q: Use the formula P = FV/(1 + R)N Inez wants to have $15,000 in 2 years. Calculate how much Inez…
A: Inez has to invest $13,316 today to receive $15,000 in 2 years.
Q: Use the formula FV = P(1 + R)N Barry Newman's savings account has a balance of $4,088. After 25…
A: Interest is the amount which is paid for the amount borrowed or received for the amount given or…
Q: kindly, explain more
A: When deciding where to invest there many factors that need to be considered in order to take any…
Q: Calculate the net working capital of the company Using the following information.
A: Net working capital is the difference between current assets and current liabilities. If a company…
Q: 2. An analysis and aging of Concord Corp. accounts receivable at December 31, 2025, disclosed the…
A: Net realizable value is the amount estimated to be collectable. Net realizable value is calculated…
Q: Last year, Bagger Company had sales revenue of $1,250,000, direct materials of $280,000, directlabor…
A: Lets understand the basics. For determining mark up, we need to calculate the total cost of job and…
Q: Rob is a quality inspector on the assembly line of a manufacturing company. He is paid P16 per hour…
A: Actual Hours Worked = 45 hours - 2 hours Idle Time = 43 Hours Idle Time = 2 Hours…
Q: Identify three or more accounting activities that takes place primarily at year-end, as opposed to…
A: Under the process of accounting, various activities are performed throughout the accounting period…
Q: Budget in Service Company (Cash Budget) Edge Soccer Program (Edge) began the year with a cash…
A: A cash budget is a forecast of cash inflows and outflows from the business. It's very beneficial to…
Q: Prepare the monthly cash budget of Tox Ltd for the period January- March 201 (Please show me…
A: Cash budget provides details about cash inflows and outflows in the company.Cash budget starts with…
Q: The management of Dominican Sugar Company is considering whether to process further raw sugar into…
A: 1. Differential analysis Sell raw sugar (Alternative 1) or process further into refined sugar…
Q: Compare and contrast short- and long-term goals for a company. Give an example of each, and explain…
A: Short-term goals are important for a company because they provide a sense of direction and focus.…
Q: In January, 2021, Melon Corporation purchased a mineral mine for $3,400,000 with removable ore…
A: Natural resources deplete you over time in the same way that material goods do due to wear and tear.…
Q: Problem 09-76 (LO 09-6) (Algo) [The following information applies to the questions displayed below.]…
A: Introduction The valuation of an asset used to calculate the gain or loss when the asset is sold is…
Q: Bridgeport Limited has two debt securities classified as FV-OCI. For the Chan bonds, assume the…
A: Investment - A purchase made with the intention of creating income or capital growth is known as an…
Q: • LewisCo reports gross income of $111,550 and other property-related expenses of $66,800 and uses a…
A: Determination of Lewis Co's Taxable Income Particulars Amount Gross Income 111,550 (-)…
Q: On October 1, Midway Distribution Company is considering leasing a building and purchasing the…
A: Workings Operate Retail Store = ($ 70,100 x 8) + ($70,800 x 8) Operate Retail Store = $ 560,800 + $…
Q: Turnbull Co. is considering a project that requires an initial investment of $570,000. The firm will…
A: Calculation of Weights & WACC Source Amount Weight Rate WACC Debt 230000 0.40 7.65…
Q: Current Attempt in Progress Novak Woodcrafters sells $230,000 of receivables to Commercial Factors,…
A: Cash received = Accounts receivable - Finance Charge - Amount retained (Due from factor)
Q: Current Attempt in Progress Tamarisk Company reports the following costs and expenses in May.…
A: Indirect Cost :— It is the cost that are not directly incurred in the manufacturing of product.…
Q: From the following balances extracted from the books of M/s Ahuja and Nanda. Calculate the amount…
A: The direct expense incurred in producing any goods or services is known as the cost of goods sold.…
Q: REQUIRED: The business needs to have a sense of its future cash inflows and outflows for the…
A: The cash budget is the estimation of total receipt and payment during the given period. It may be…
Q: What is the difference between convertible bonds and bonds with warrants?
A: A convertible bond is a type of debt that can be converted into equity. This means that the holder…
Q: Nicholas owns a computer service and operates it as a sole proprietorship. In 2022, taxable income…
A: Section 179 allows businesses to deduct the full cost of capital assets (like furniture and…
Q: Lauprechta Inc. has the following employees on payroll: Semimonthly Payroll # of Dependents/W-4…
A: According to the IRS , the income range from $89,076 to $170,050 is subject to 24% federal tax .…
Q: Indicate whether each of the following statements is true or false. The recoverable amount used to…
A: As per IAS 36,Impairment of assets Recoverable amount is greater of 1. Fair value less cost to sell…
Q: Items Common stock account Par value per share Shares outstanding Additional paid-in capital…
A: Dividend is the amount which is paid by the company to its shareholders. It is paid by the company…
Q: A purchased 2 Common shares of th shareholder C has 49 shares. When being repaired. When B refuses A…
A: The purchase of common stock of the company represents the ownership interest of the shareholder in…
Q: The following information was taken from the financial statements of Zeil Inc. for December 31 of…
A: The ratio analysis is done to analyse the different financial statements of the business. The…
Q: For the year ended December 31, 2022, the job cost sheets of Carla Vista Company contained the…
A:
Q: 3. On June 30 of the next year, Jarden concludes that a customer's $5,800 receivable is…
A: Introduction:- Allowance for doubtful debts is the amount of uncollectible dets (Accounts…
Q: The GDP in India is $2.65 trillion. The rate of inflation is 2.5%. If the population of India is…
A: It displays the relative economic production and purchasing power of each citizen. the foundation…
Q: Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2024, for…
A: The cost of an intangible asset is incrementally incurred or written off over time through the…
Q: Laudie Company issued $400,000 of 5%, 10-year bonds on January 1, 2020, at 94. Interest is payable…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: The income statement for Sandhill, Inc. is as follows: Sales revenue Cost of goods sold Gross profit…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Non-Slip Tile Company (NST) has been using production runs of 100,000 tiles, 10 times per year, to…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: s presently having a machine whose book value is Rs 7,50,000 and it is estimated to have a useful…
A: Depreciation - Depreciation is a term that describes two related ideas: first, the actual decline in…
Q: Prepare a Translated Income Statement using USD currency showing the Translated Profit for the year.…
A: Exchange Rates to be used: Particulars Exchange Rate For all Incomes and Expenses Average rate…
Q: 582068
A: Accumulation of total output Vat shall consist of VAT on Sales made and excess tax paid on purchase…
Q: Glenda, a single taxpayer from Kansas, paid for more than one-half of the support for her mother,…
A: There are many different filing status options available to taxpayers. Some of those are- Single…
Q: what is the golden law of accounting?
A: Accounting - Accounting is art of recording transactions done in the financial year. Accounting…
Q: Problem 5. Sportsman, Inc. produces different sizes of basketballs. The following costs were…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
I need in one hour please do it please fast as soon as possible
Step by step
Solved in 3 steps
- Parch Inc. and Rees Urch, Parch's former head of R&D, formed Sede Inc., which will perform research and development. Sede issued 10,000 shares of common stock to Urch, who is now Sede's president. Parch lent $800,000 to Sede for initial working capital in return for a note receivable that can be converted at will into 100,000 shares of Sede's common stock. Parch also granted Sede a line of credit of $1,000,000. Is consolidation appropriate for Parch and Sede? Explain and justify your answer. What would Parch accomplish with this arrangement? If consolidation were not appropriate, what serious reporting issue exists regarding Parch's separate financial statements?Sarasota Ltd. was incorporated on January 1, 2024. During the year the company entered into the following transactions: Jan. 5 Issued 58,000 common shares for $2.50 per share. Jan. 20 Issued 3,000 common shares to settle legal expenses. The value of the legal expenses was $9,940. Feb. 10 Issued 15,000 preferred shares for $35.00 per share. Aug. 12 Repurchased 17,400 common shares for $2.40 per share. Oct. 1 Issued 4,100 common shares for $2.25 per share. Dec. 15 Repurchased 21,000 common shares for $2.72 per share. Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round per share calculations to 2 decimal places, e.g. 5.75 and final answers to 0 decimal places, e.g. 5,275.) Date Jan, 5 Jan 20 # Account…Madraza Corporation was incorporated on July 1, 20A with authorized ordinary share capita of P1,000,000 and preference share of P2,000,000 with par value of P100 each. During the year, the corporation had the following transactions affecting the Shareholders' Equity: 1st: 120 ordinary shares were issued for cash at par value. 2nd: 380 ordinary shares were issued in exchange for land. The fair market value of land is P50,000. 3rd: 200 ordinary shares were issued in payment of legal expenses incurred during the incorporation process, P25,000. Q-8 How much is the balance of Ordinary Share Capital account? a) P60,000 b) P70,000 c) PS0,000 d) none of these Q-9 What amount of Share Premium should be reported in the Statement of Financial Position? a) P17,000 b) P19,000 c) d) P21,000 none of these
- Ayayai Ltd. was incorporated on January 1, 2024. During the year the company entered into the following transactions: Jan. 5 Issued 49,000 common shares for $2.50 per share. Jan. 20 Issued 2.700 common shares to settle legal expenses. The value of the legal expenses was $8,818. Feb. 10 Issued 11,000 preferred shares for $50.00 per share. Aug 12 Repurchased 14,700 common shares for $2.40 per share. Oct. 1 Issued 5,300 common shares for $2.25 per share. Dec. 15 Repurchased 22,000 common shares for $2.70 per share. Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round per share calculations to 2 decimal places, eg. 5.75 and final answers to 0 decimal places, eg 5,275)During its first year of operation, Victory Inc. entered into the following transactions relating to shareholders equity. Victory’s articles of incorporation authorized the issue of 240,000 ordinary shares, 10 par per share, and 30,000 preference shares for 100 per share. March 14 - sold 50,000 ordinary shares for 100 per share. March 15 - issued 20,000 ordinary shares to lawyers in exchange for legal services amounting to 300,000. March 15 - sold 35,000 of its ordinary shares and 10,000 preference shares for 6,000,000. Fair value of the ordinary share is 100. November 20 - issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be 185,000. Based on the preceding information, determine the total shareholders equityCrane Corporation has 2,000 shares of stock outstanding. It redeems 500 shares for $370,000 when it has paid-in capital of $300,000 and E & P of $1,200,000. The redemption qualifies for sale or exchange treatment for the shareholder. Crane incurred $13,000 of accounting and legal fees in connection with the redemption transaction and $18,500 of interest expense on debt incurred to finance the redemption. What is the effect of the distribution on Crane Corporation’s E & P? Also, what is the proper tax treatment of the redemption expenditures?
- To obtain all of the stock of Molly, Inc., Harrison Corporation issued its own common stock. Harrison had to pay $98,000 to lawyers, accountants, and a stock brokerage firm in connection with services rendered during the creation of this business combination. In addition, Harrison paid $56,000 in costs associated with the stock issuance. How will these two costs be recorded?During its first year of operations, LEBANON COMPANY entered into the following transactions relating to shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shares, P10 par per share, and 300,000 preference shares, P50 par per share. Mar. 14 Sold 500,000 ordinary shares for P100 per share. 15 Issued 20,000 ordinary shares to attorneys in exchange for legal services. 15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be P185,000. Based on the preceding information, determine the correct balance of each of the following accounts. Compute for the ordinary share capital, share premium-ordinary shares, preference share capital and share premium-preference share.Prepare general journal entries for the following transactions, identifying each transaction by letter:(a) Gnu Company issued 5,000 shares of $1 par common stock to the Prendergas law firm as partial payment of fees incurred to incorporate the business. Gnu was short of cash, so Prendergas agreed to accept $10,000 cash and the shares of common stock in full settlement of its bill for $55,000.(b) Gnu issued 50,000 shares of $1 par common stock in exchange for a parcel of land for building a shopping plaza. (The list price for the land was $400,000; a similar parcel in the same area sold last week for $380,000. During the past month, the price at which Gnu’s common stock has traded on the open market has ranged from $5 to $12 per share. Two trades occurred yesterday at $7 and $10 per share.)(c) Gnu purchased 10,000 shares of $1 par value common treasury stock for $70,000. (This is the only treasury stock that Gnu holds.)(d) Gnu sold 4,000 shares of common treasury stock for $32,000.(e)…
- During its first year of operations, LEBANON COMPANY entered into the following transactions relating to shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shares, P10 par per share, and 300,000 preference shares, P50 par per share. Mar. 14 Sold 500,000 ordinary shares for P100 per share. 15 Issued 20,000 ordinary shares to attorneys in exchange for legal services. 15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be P185,000. Based on the preceding information, determine the correct balance of each of the following accounts. 1. Ordinary share capital a. P5,569,000 b. P5,219,000 c. P5,550,000 d. P6,069,000 2. Share premium - ordinary shares a. P46,800,000 b. P49,950,000 c. P52,116,000 d. P50,116,000 3. Preference share capital a. P2,000,000 b. PO c. P500,000 d. P2,500,000 4. Share premium -…During its first year of operations, LEBANON COMPANY entered into the following transactions relating to shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shares, P10 par per share, and 300,000 preference shares, P50 par per share. Mar. 14 Sold 500,000 ordinary shares for P100 per share. 15 Issued 20,000 ordinary shares to attorneys in exchange for legal services. 15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be P185,000. Based on the preceding information, determine the correct balance of each of the following accounts. 1. Ordinary share capital a. P5,569,000 b. Р5,219,000 c. P5,550,000 d. P6,069,000 2. Share premium - ordinary shares a. P46,800,000 b. P49,950,000 c. P52,116,000 d. P50,116,000 3. Preference share capital a. P2,000,000 с. Р500,000 b. РО d. P2,500,000 4. Share premium -…The Rogers Company is authorized to issue 50 000 ordinary shares of P30 par value. Record the following transactions in Journal entry form. (a) Issued 10 000 shares at par value, received cash. (b) Issued 250 shares to attorney's for services in securing the corporate charter and for preliminary legal costs of organizing the corporation. The value of the services was P 9 000. (c) Received subscriptions for 300 shares at P4O. (d) Collected the above ordinary shares subscriptions and issued stock Certificate. (e) issued 8 500 shares of stock in exchange for buildings valued at P 175 000 and land valued P 80 000 (f) Received cash for 6 500 shares of stock sold at P38 per share. (g) issued 4 000 shares at P45; received cash.