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Question - Rocky Mountain Sounds Corp., an electric guitar retailer, was organized by Cathy Dewitt, Melody Leimbach, and Mario Torres. The charter authorized 250,000 shares of common stock with a par of $40. The following transactions affecting stockholders' equity were completed during the first year of operations.
Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank.
a. Issued 10,000 shares of stock at par to Cathy Dewitt for cash.
The company plans to purchase a new building for $200,000 in July and sell its marketable securities for $100,000. If the company must maintain a minimum cash balance of $50,000, how much money must the company borrow in July?
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The board members call you, their trusted CPA, to advise the on how Raffie's Kids should report the mortgage on its balance sheet. What is the ethical issue? Provide your recommendation and discuss the reason for your recommendation - Raffie's Kid..
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