Record the transactions in the journal

Assignment Help Accounting Basics
Reference no: EM13153586

The partners who own a Cohen Canoes Co. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Cohen Canoes Inc. The charter from the state of Utah authorizes the corporation to issue 9,000 shares of $2 no-par prefered stock and a 100,000 shares of $5 par common stock. In its first month Cohen Canoes completed the following transactions:

May 6 Issued 900 shares of common stock to the promotor for assistance of issuance of the common stock. The promotional fee was $22,500. Debit organization expense.
9 Issued 10,000 shares of common stock to Ben Cohen and 12,000 shares to Bill Cohen in return for cash equal to the stock's market value of $25 per share. The Cohens were partners in Cohen Canoes Co.
10 Issued 800 shares of preferred stock to acquire a patent with a market value of $20,000.
26 Issued 1,000 shares of common stock for $25 cash per share.

Directions:

1. Record the transactions in the journal.

2. Prepare the stock holders equity section of the Cohen Canoes Incorporated, balance sheet at May 31. The ending balance of retained earnings is $55,000.

Reference no: EM13153586

Questions Cloud

Evaluation-financial measures : Should college professors limit their evaluation of students to these “financial” measures? Do you see any potential benefits or disadvantages of including other measures of student performance in assigning course grades?
How are these direct repeats formed : Most transposable elements are flanked by short direct repeats. How are these direct repeats formed?
Explain what mass of water condenses inside the bottle : The bottle is brought outside and stored at 0.0°C. (See Table 5.2) (a) What mass of water condenses inside the bottle? _______g (b) Would water condense at 10 degrees C?
What are endothelial cells : What are endothelial cells? What role do they play in wound healing and in angiogenesis (define).
Record the transactions in the journal : Record the transactions in the journal. Prepare the stock holders equity section of the Cohen Canoes Incorporated, balance sheet at May 31. The ending balance of retained earnings is $55,000.
Accounting records problem : Justings Co. owned 80% of Evana Corp. During 2006, Justings sold to Evana land with a book value of $48,000. The selling price was $70,000. In its accounting records, Justings should:
Discuss advantages and disadvantages of using divisional : Discuss the advantages and disadvantages of using divisional profits as the basics of incentive compensation for fivision managers compared to using company profits as the basis.
Find probability that one is democrat followed by republican : if two voters are randomly selected for a telephone survey, what is the probability that they one is a Democrat followed by a Republican? Round your answer to 4 decimal places.
What is the genotype of the unknown individual : In corn, purple kernels (P) are dominant to yellow kernels (p). You have a plant with an unknown genotype that has a phenotype of purple kernels. You perform a testcross and find that all of the offspring are purple.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd