Financial and Managerial Accounting - CengageNow
15th Edition
ISBN: 9781337911979
Author: WARREN
Publisher: CENGAGE L
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Chapter 1, Problem 25E
Financial statements
We-Sell Realty was organized as a corporation on August 1, 20Y7, by the issuance of common stock of $15,000. We-Sell Realty is owned and operated by Omar Farah, the sole stockholder. The following statements for We-Sell Realty were prepared after its first month of operations:
a. Identify the errors contained within the presented financial statements for We-Sell Realty.
b. Prepare a corrected set of financial statements for We-Sell Realty.
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On February 20, services valued at $60,000 relating to the organization of a corporation were performed in
exchange for 1,000 shares of its $25 par value common stock.
Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the
dollar amounts in the debit or credit columns.
View transaction list
Journal entry worksheet
1
On February 20, services valued at $60,000 relating to the organization of a
corporation were performed in exchange for 1,000 shares of its $25 par value
common stock.
Note: Enter debits before credits.
Date
Feb. 20
General Journal
Debit
Credit
Bata Corporation a calendar year c
Corporation was formed and began
operaions on Apill1, 2022. The following
expenses were incurred during the first
year (April 1 through December 31)
Expenses of temporary directions and of
organizational meetings $27000
Fee paid to the state of incorporation
1,000
Accounting services incident to
organization 15,500
Legal services for drawing the corporate
charter and bylaws 10,500
Expenses incident to the printing and
sale of stock certificates 6,000
Assuming a § 248 election, what is the
Baba's immediate expense under
organizational expenditures for 2022?
Muster 2021 Company carried out the following four transactions during the year ended March 31, 2021. Which of the following are related party transactions according to IAS 24 Related Party Disclosures? I. Transferred goods from inventory to a shareholder owning 40% of the company's ordinary shares II. Sold a company car to the wife of the managing director III. Sold an asset to Muster 2021 Company, a sales agent IV. Took out a P1,000,000 bank loan
Chapter 1 Solutions
Financial and Managerial Accounting - CengageNow
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - A business had revenues of 640,000 and operating...Ch. 1 - The financial statements are interrelated. (A)...
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