Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started:\ table[[Expense, Date,Amount], [\table[[Attorney fees for articles of incorporation], [March 1 - March 30 wages]], February 10, $43,000 What is the total amount on the start-up cost and organizational expenditures for nicoles corporation?

Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started:\ table[[Expense, Date,Amount], [\table[[Attorney fees for articles of incorporation], [March 1 - March 30 wages]], February 10, $43,000 What is the total amount on the start-up cost and organizational expenditures for nicoles corporation?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1CE

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Required information [The following information applies to the questions displayed below.] Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable.) Expense Date Amount Attorney fees for articles of incorporation February 10 $ 32,000 March 1–March 30 wages March 30 4,500 March 1–March 30 rent March 30 2,000 Stock issuance costs April 1 20,000 April 1–May 30 wages May 30 12,000 a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation?
You are an accountant working for a manufacturing company that makes personal care products and has recently decided to incorporate. The company incurred a total of $7,900 for attorneys fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. What is the journal entry to record these costs on February 28, assuming they are paid in cash?
You are an accountant working for a company that has recently decided to incorporate. The company has incurred $4,300 for attorneys fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. What is the journal entry to record these costs on March 13, assuming they are paid in cash?
2. January 1, John Smith formed a corporation. Record the following transactions that took place during the year ended December 31, 1990 on the attached sheet. The corporation records transactions on an accrual basis. Record contribution of $25,000 cash for Capital Stock. Leased a building at a cost of $10,000 per year on 1/1/90. Purchased inventory for resale at a cost of $20,000 payable June 15, 1991. Sold one-fourth of the inventory for $5,000 cash and $5,000 on account. Collected $2,500 on account. Paid salaries as follows: Gross Pay $954 158 Federal withholding FICA withholding Net Pay 46 $750 Paid taxes withheld and company's share of FIICA ($46) to the government. Transaction for the Year Credits Debits Cash Accounts Receivable Inventory Accounts Payable Accrued Payroll Taxes Capital Stock Retained Earning (Net Income) Sales Cost of Sales Salaries Payroll Taxes Lease Expense Income Taxes Total Transactions
deductible)? 73. Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: Expense Attorney fees for articles of incorporation February 10 March 1-March 30 wages March 30 March 1-March 30 rent March 30 Stock issuance costs April 1 April 1-May 30 wages May 30 Date Amount $32,000 4,500 2,000 20,000 12,000 a) What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? b) What amount of the start-up costs and organizational expenditures may the corporation immediately expense in year 1 (excluding the portion of the expenditures that are amortized over 180 months)? c) What amount can the corporation deduct as amortization expense for the organizational expenditures and for the start-up costs for year 1 [not including the amount determined in part (b)]? d) What would be the total allowable organizational expenditures if Nicole…
2. WIlliam Corporation was formed and began business on August 1. It incurred the following organizational expenditures: expenses in connection with stock issuance of $5,000; legal fees for drafting corporate documents of $20,000; asset transfer fees of $19,000; accounting fees of $33,000; and fees paid to the state of incorporation of $1,000. Compute the organizational expenditures deduction for the current year (to the nearest dollar). Group of answer choices $6,000 $1,000 $2,472 $5,000 None of the answers are correct.
Lakeview, a calendar year C corporation, reports the following income and expenses in the current year: Income from operations $400,000 Expenses from operations $280,000 Dividends received (10% ownership) $30,000 On July 15t of the year, Lakeview made a cash contribution to a qualified charitable organization of $25,000 in cash (not included in any of the above items). What is Lakeview's charitable contribution deduction for the year? Answer: $ . The charitable contribution deduction for corporations is limited to 10% of their taxable income for the year computed without regard to the charitable contribution deduction, net operating loss or capital loss carrybacks, and dividends received deduction. In this course, we are not applying the changes under the CARES Act.
Please solve the question below and select one of the multiple-choice options (a-d). Fish Corporation, an accrual method, calendar year C corporation, was formed and began business on November 1, of the current year. Fish incurred the following expenses during its first year of operations (November 1 – December 31, current year). Fish Corporation Expenses Expenses of temporary directors and organizational meetings $23,100 Fee paid to state of incorporation $3,300 Expenses for printing and sale of stock certificates $12,100 Legal services for drafting the corporate charter and bylaws $28,000 What amount may be deducted as organizational expenditures in the current year? a.$1,204.44 b.$600.00 c.$1,197.78 d.$1,332.22 PLEASE PROVIDE CORRECT ANSWER
Fedderman Corp., an accrual-basis calendar year repair-service corporation, began business on Monday, January 3, 20X1. Fedderman’s valid S corporation election took effect retroactively on January 3, 20X1. Assume the following facts: Fedderman’s 20X1 books recorded the following items: Gross receipts $8,800 Interest income on investments 250 Charitable contributions 1,300 Supplies 2,600 What amount of net business income should Fedderman report on its 20X1 Form 1120S, U.S. Income Tax Return for an S Corporation, Schedule K? FORMULA should be: {R} - {S}
Problem 10-73 (LO 10-4) (Algo) [The following information applies to the questions displayed below.] Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: Expense Date Amount Attorney fees for articles of incorporation February 10 $ 35,500 March 1–March 30 wages March 30 4,900 March 1–March 30 rent March 30 2,350 Stock issuance costs April 1 34,000 April 1–May 30 wages May 30 12,250 Note: Leave no answer blank. Enter zero if applicable. Problem 10-73 Part a (Algo) a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation?
Jasper Junction Corporation (JJC) is an accrual basis, calendar-year entity that was created by Chao, Iris, and Nolan in 20X1. JJC furnishes the original incorporation agreement. The shareholders' bases in the assets contributed are as follows: • Cash $150,000 • Equipment $245,000 • Inventory $380,000 • Land and Building $375,000 The first five years of business have been lean years. Nolan had to loan the corporation $75,000 to ensure that JJC had enough cash to pay its bills and its Accumulated Earnings and Profits only amounts to $23,000 at the end of 20X5. JJC has its first year of substantial income in 20X6. It also sells some of its land for $100,000 cash, but the sale results in a capital loss. The Board of Directors decides to pay $250,000 in dividends to its shareholders. This is in addition to the $3,500 of interest it pays on the bonds and the $1,500 it pays to Nolan on the money he loaned JJC. The income and expenses of JJC for 20X6, taxable income, and current E&P are…
Prepare journal entries to record the following transactions and events, based on the assumption that the nonprofit, with a June 30 fiscal year-end, uses a single account to record all unrealized and realized investment gains and losses. Then, prepare journal entries for Events 2 and 3, based on the assumption that the nonprofit separates unrealized from realized investment gains and losses. 1. On July 15, a nonprofit received a donation of Apple stock that had a fair value of $75,000 at the time of the donation. The donor told the nonprofit that the stock could be sold and used only to finance a particular research project. 2. On December 31, when the nonprofit closed its books, the stock had a fair value of $76,500. 3. On February 15, the nonprofit sold the stock for $76,000. 4. On March 15, the nonprofit spent the entire $76,000 on the research project for which the donor made the gift.