Reference no: EM133189439
Question - Construction Inc. began its operations on January 2, 2021. The articles of incorporation stated that the business is authorized to issue an unlimited number of common shares, and 100,000, $1 non-cumulative preferred shares. In 2021, the company had the following selected transactions. The fiscal year end is December 31, 2021.
Transactions:
Jan 2 Issued 100,000 common shares for $2.50 each in cash.
Jan 31 Issued 1000 preferred shares to the lawyer in exchange for legal fees totalling $4,000.
July 1 Declared a 10% stock dividend for the common shareholders at the fair market value of $2.50 on July 1, 2021 for shareholders of record on July 15, 2021. The date of payment is July 24, 2021. Prepare all entries required.
Dec 15 Declared both the annual preferred share dividend and a $0.40 common share dividend to shareholders of record on December 20, payable on December 27, 2021.
On December 31, 2021, the Construction Revenue account balance was $1,275,000 and the total operating expenses amounted to $875,000. The income tax rate is 15% and the company did not make any income tax payments during the year.
Required -
1. Journalize the selected transactions.
2. Journalize the entry to record income tax expenses at year end.
|
What is the amount of gain or loss the company would record
: If the company sells the asset on January 1st of year 4, for $40,000 cash what is the amount of Gain / Loss the Company would record
|
|
Determine the price of the bonds to be issued
: On January 1, 20X1, Beltnet Pte Ltd issued a 4-year bonds at a price of $622,837. Determine the price of the bonds to be issued
|
|
Characterize england competitive position compared to ashley
: Characterize England competitive position compared to Ashley, Be sure to quantify relative price and cost on an equivalent per unit basis
|
|
Describe how specific lipid molecules can alter properties
: Describe how specific lipid molecules can alter the properties of certain proteins. Discuss how the cell make use of this process to modulate specific cellular
|
|
Journalize the selected transactions
: Journalize the selected transactions - Jan 31 Issued 1000 preferred shares to the lawyer in exchange for legal fees totalling $4,000
|
|
What is the budgeted production for each of the months
: Moore Inc. expects sales of 3,000 units of A1 in January. A1 is its most popular high performance laptop model. What is the budgeted production
|
|
How will the dividend affect each company balance sheet
: Randolph Corporation declares and pays dividends to its stockholders. How will the dividend affect each company's balance sheet account
|
|
Factors needed to formulate a successful strategic plan
: Factors needed to formulate a successful strategic plan, Paul was asked to formulate a strategic plan for the new series of skin care
|
|
Conclude a contribution margin income statement
: Ignoring the special order, conclude a contribution margin income statement that shows the operating profit of the 50,000 units KadyFen currently sells
|