What should be reported as additional paid-in capital

Assignment Help Accounting Basics
Reference no: EM132586499

Question 1: The XYZ partnership has inventory (book value of $200,000 and fair value of $220,000) and fixed assets (book value of $800,000 and fair value of $880,000). It has no other assets. The partnership also has liabilities with both a book value and fair value of $300,000. Partnership capital is recorded as $700,000. The three partners are currently incorporating this business and plan to issue 10,000 shares of $10 par value common stock to each individual. In setting up the opening account balances for the new corporation, what should be reported as additional paid-in capital ?

Option 1: $500,000

Option 2: $100,000

Option 3: Zero

Option 4: $400,000

Reference no: EM132586499

Questions Cloud

Discuss what the chart is used for and why you selected it : Select a chart type from the text and discuss what the chart is used for and why you selected it. (The author has included a lot of different chart types.
Explain regulation of gene expression in eukaryotic cells : Write a 1,050- to 1,400-word paper examining the process of gene expression. Explain regulation of gene expression in eukaryotic cells
Prepare journal entries in nambas books : Prepare journal entries in Nambas books from 2017 to 2019 to account for the effects of foreign transactions as per IAS 21, the effects of changes
Find what should be reported as additional paid-in capital : Find what should be reported as additional paid-in capital ? The partnership also has liabilities with both a book value and fair value of $300,000.
What should be reported as additional paid-in capital : The XYZ partnership, In setting up the opening account balances for the new corporation, what should be reported as additional paid-in capital ?
Develop business intelligence development plan : Develop a Business Intelligence Development Plan for a local corporation that has recently implemented a new centralized information management system
Record all the transactions in JOURNAL : March 1 Nili started business with RM200,000 in Bank. March 4 Bought goods by cheque RM20.000. Record all the transactions in JOURNAL
Disease that affect the nervous system : The presentation should also be composed of definition, causes, effects, symptoms, preventive methods, treatment and others
Premonition of civil war : Discuss Dali's philosophy and purposes in art as they are reflected in Persistence of Memory and Soft Construction with Boiled Beans: Premonition of Civil War.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the companys net cash flow

The company borrowed $290,000 from the bank, signing 90-day, 8 percent note payable. Compute the company's net cash flow from financing activities for the year

  The two firms fall in the same industry

Can the financial positions of the two firms be compared assuming that the two firms fall in the same industry?

  Prepare the journal entries that X record

X sold its investment in Y on January3,2021, for $280,000. No other investments were purchased during 2021. Prepare the journal entries that X record

  Calculate payback period for each project and recommend

RARE Ltd considering investing between two mutually exclusive project. Calculate payback period for each project and recommend which project RARE should select.

  Calculate the depreciation for one month

The office equipment has a scrap value of $500. The computer equipment has no scrap value. Calculate the depreciation for one month

  Dawes advertising companys trial balance at december 31

dawes advertising companys trial balance at december 31 shows advertising supplies 8800 and advertising supplies

  Bdgets can include financial or nonfinancial data in our

1. budgets are the same regardless of the size of an organization or managementu2019s role in the budgeting

  Determine the corrected amounts

Determine the corrected amounts for 2017 cost of goods sold and December 31, 2017, retained earnings

  Calculate the debt-to-equity ratio

Calculate the debt-to-equity ratio. Round to two decimal places.

  Record the journal entries during the March

Record the journal entries during the March 2019 quarter for sales $6600 (including GST) and inventory purchase $1210 (including GST)

  Bismarck company engaged duval tooling company to construct

on july 31 2012 bismarck company engaged duval tooling company to construct a special-purpose piece of factory

  Calculate the margin romero company needed to earn

Calculate the margin Romero Company needed to earn in the most recent year in order to achieve a return on investment of 15%

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