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Tems11 [23]
2 years ago
14

Q 11.40: Woolley Cloth Distributors issued 25,000 shares of $10 stated value no par stock in exchange for land with an advertise

d price of $318,000. The stock is currently trading for $12 per share. Journalize the entry to recognize the exchange.
Business
1 answer:
spin [16.1K]2 years ago
5 0

Answer:

The entry to recognize the exchange :

<em>Land $318,000 (debit)</em>

<em>Common Stock $300,000 (credit)</em>

<em>Accounts Payable $300,000 (credit)</em>

Explanation:

The Price of stock is equivalent to the issue price at the date of the transaction of $12.

Note that the Common Stocks do not have par value, this means there is no share premium reserve on the stocks that needs to be recognized.

Since the Price of land is above the price of common stocks, the remainder is the amount owing, a liability.

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A disadvantage of adding a salad bar to a school lunch menu would be ?
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Which of the following statements is correct? Review Later Strategic buyers are asset managers that are trying to time the purch
kicyunya [14]

Answer:

Strategic buyers are asset managers that are trying to time the purchase or sale of a business.

Financial buyers are institutions that provide capital and are not operators.

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Financial buyers are the one which basically provides finance to the company.

In simple terms these buyers just invest in the companies and have short term or long term goals from this investment, as long as these goals in the form of expected return are fulfilled they keep the investment, as soon when they discover its profitable to sell it further and have a capital gain they do so.

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A pharmaceutical company in 2016 is researching the market conditions for their newest cold medicine. They pull demographic data
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Secondary data technique is not perfect for marketing research

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When ABC company filed its Articles of Incorporation with the State of California and All of their correspondence and contracts list ABC as ABC Inc. They are already tagged as a corporation with limited liability.

Now; when there is a breach of contract and they are being sued by XYZ Inc. From the knowledge that XYZ file the lawsuit case against ABC, the ABC company will then be treated as a partnership acquainted with unlimited liability instead of a corporation with limited liability they are being known for since they already had a notice from the State of California that their Articles of Incorporation have been rejected.

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