How would the company record the transaction

Assignment Help Financial Accounting
Reference no: EM132826453

Problem 1: A company purchased machinery by issuing 2,000 shares of $3 par value common stock. Since the company is new, there is no established market price for its stock. How would the company record the transaction?

a. At the cost recorded by the previous owner of the machine
b. In terms of the par value of the stock issued
c. Recording the transaction would be postponed until a market price for the stock could be determined.
d. At the fair market value of the machine

Problem 2: Which of the following transactions has an effect on the statement of cash flows?

a. A large stock dividend
b. The sale of preferred stock
c. A small stock dividend
d. The declaration of a cash dividend

Reference no: EM132826453

Questions Cloud

What amount should the building be recorded by fairchild co : The stock is widely traded and selling for $31 per share. At what amount should the building be recorded by Fairchild Company?
Differences between actual costing and normal costing : Explain the differences between actual costing and normal costing. Explain the differences between process costing and job-order costing
Why student data is important in understanding student needs : In 250-500 words, summarize the collaborative process with your mentor teacher and reflect upon the importance of gathering assessment data for your future.
Explain the two variants of consequentialism : Explain the two variants of consequentialism. Provide a real-life example for each of these.
How would the company record the transaction : How would the company record the transaction? A company purchased machinery by issuing 2,000 shares of $3 par value common stock.
Explain the two variants of consequentialism : 1. Explain the two variants of consequentialism. Provide a real-life example for each of these. Do not take help from internet
Calculate the book value of the old piece of equipment : Irvin Enterprises is considering the purchase of a new piece of equipment to replace the current equipment. Calculate the book value of old piece of equipment
Why teachers articulate interpretations of assessment result : Justify why teachers should be able to articulate their interpretations of assessment results and their reasoning about the educational decisions based.
How many shares of common stock are outstanding of box co : How many shares of common stock are outstanding? Use the incomplete Stockholders' Equity section of Box Company's balance sheet

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute the break-even point in dollar sales for year

[The following information applies to the questions displayed below.] Astro Co. sold 19,500 units of its only product and incurred a $45,700 loss (ignoring taxes) for the current year as shown here. Compute the break-even point in dollar sales for ye..

  Advantage of raising funds by issuing bonds

Explain whether each of the above expenditures should be recorded as an operating expense or an intangible asset. If you view the expenditure as an intangible asset, indicate the number of years over which the asset should be amortized, if any. Ex..

  Discuss the major financial ratios and financial cycles

Discuss the major financial ratios and financial cycles, debt ratio, debt to equity ratio, return on assets, return on equity, current ratio, quick ratio

  What figures constitute this balance

Benns adopts the equity method for its 100 percent investment in Water. At the end of six years, Benns reports an investment in Waters of $920,000. What figures constitute this balance?

  Deductions for interest on home mortgage and property taxes

DISCUSS the probable justification for each of the following aspects of the tax law...I NEED at least one sentence explaining your answer. A tax credit is allowed for amounts spent to furnish care for minor children while the parent works. Deductions..

  Variable or fixed with respect to number of units produced

.Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrat..

  How many preferred shares have been issued

How many preferred shares have been issued as of year-end 2007 and 2008 and How many common shares have been issued as of year-end 2007?  As of year-end 2008?

  Write out which accounts increased for each transaction

For each situation, write out which accounts increased or decreased for each transaction and the amount of the increase or decrease.

  What is consolidated net income for sedona and phoenix

What is consolidated net income for Sedona and Phoenix for 2013

  Record adjusting entries for depreciation for 2015

Journalize the transactions.-  Record adjusting entries for depreciation for 2015.-  Prepare the plant assets section of Navaro's balance sheet at December 31, 2015.

  Dissolving their partnership

Peters, Chong, and Aaron are dissolving their partnership. Their partnership agreement allocates each partner an equal share of all income and losses. The current period's ending capital account balances are Peters, $84,000;

  Find the selling price of the bond

Find the selling price of the bond. Was this bond issued at a premium or a discount? A company issued $250,000, 8%, 5-year bonds on January 1, 2018.

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