Reference no: EM132794249
Question - The stockholder's equity of Acme Corporation at December 31, 2010 consisted of the following:
Common stock $10 par 24,000 shares outstanding $240,000
Additional paid in capital 80,000
Retained Earnings 60,000
The Company has been in a tight working capital position and at October 1 sold 16,000 previously unissued common stock to Bugs Corporation for $320,000. All of Acme's assets and liabilities were recorded at fair value at this date except for building with remaining useful life of 5 years that was undervalued by $60,000 and equipment with resuming useful life of 10 years that was overvalued by $20,000.
During 2011 Acme reported net income of $180,000 and paid dividends Mar 31 of $20,000, June 30 of $20,000; Sept 30 of $ 10,000 and Dec 31 of $ 10,000 for a total of $60,000 for the year.
Required -
1) Record the entry by Acme corporation on the issue of the shares to Bugs Oct 1.
2) Record the entries to record the dividends paid every quarter.
3) Record any other entry or entries necessary by Acme at year end Dec 31, 2011.
4) What is the net assets of Acme Corporation at Dec 31, 2011?
|
Annual rate of return on government bonds
: Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 22 years.
|
|
Construct the annotation for the source
: Now that you have selected a topic for your final presentation, this week you will need to construct your annotated bibliography using APA style.
|
|
What is the value of the retained earnings account
: What is the value of the retained earnings account for the December 31, 2020 on the company's balance sheet?
|
|
What is the maximum that can be paid for an advertising
: Assuming that ABC Company sells 80,000 units, what is the maximum that can be paid for an advertising campaign while still breaking even?
|
|
Record the entries to record dividends paid every quarter
: During 2011 Acme reported net income of $180,000 and paid dividends Mar 31 of $20,000, Record the entries to record dividends paid every quarter
|
|
What is the price of a share of stock
: What is the price of a share of stock if the beta is? 1.5, its next dividend is projected to be $3.50?, and its growth rate is expected to be a constant 8%
|
|
How artwork produce in america compare to art made in europe
: How did artwork produced in America from 1945 to 1960 compare to art made in Europe? Did the artwork change as the 20th century progressed?
|
|
Role and Purpose of Visitor Attractions
: Discuss this statement, and demonstrate if heritage tourism is significant within Scotland today. Timothy, D. J. (2011) Cultural Heritage and Tourism
|
|
What is the price of a share of stock
: What is the price of a share of stock if the beta is? 2, its next dividend is projected to be $2, and its growth rate is expected to be a constant 9%?, assuming
|