Reference no: EM132933325

Problem 1: On March 1, 2020, Truffles Corporation issues 10,000 common shares at the current market value of $10 in exchange for equipment. The fair value of the equipment cannot be determined. What is the journal entry to record the transaction?

Select one:
a. Debit Equipment $100,000, Credit Accounts Payable $100,000
b. Debit Common Shares $100,000, Equipment $100,000
c. Cannot be identified from the given information
d. Debit Equipment $100,000, Credit Common Shares $100,000

Problem 2: What does it mean for a corporation to be considered a going concern?

Select one:
a. A corporation remains an entity regardless of the comings and goings of shareholders.
b. A corporation has unlimited capital so it can never become bankrupt.
c. A corporation is problematic so its shareholders should be concerned.
d. A corporation's shareholder is still considered an owner of the corporation even after selling all of the company's shares.