Questions from Accounting Principles

Q: Gamma Co. capital balances are Barr $30,000,

Gamma Co. capital balances are Barr $30,000, Croy $25,000, and Eubank $22,000. The partners share income equally. Tovar is admitted to the firm by purchasing one-half of Eubank’s interest for $13,000....

Q: In Eastwood Co., capital balances are Irey $40,000

In Eastwood Co., capital balances are Irey $40,000 and Pedigo $50,000. The partners share income equally. Vernon is admitted to the firm with a 45% interest by an investment of cash of $58,000. Journa...

Q: Capital balances in Pelmar Co. are Lango $40,000

Capital balances in Pelmar Co. are Lango $40,000, Oslo $30,000, and Fernetti $20,000. Lango and Oslo each agree to pay Fernetti $12,000 from their personal assets. Lango and Oslo each receive 50% of F...

Q: Data pertaining to Pelmar Co. are presented in BE12.9

Data pertaining to Pelmar Co. are presented in BE12.9. Instead of payment from personal assets, assume that Fernetti receives $24,000 from partnership assets in withdrawing from the firm. Journalize t...

Q: Angie Baden is studying for her accounting midterm examination. Identify for

Angie Baden is studying for her accounting midterm examination. Identify for Angie the advantages and disadvantages of the corporate form of business organization.

Q: At December 31, Ortiz Corporation reports net income of $480

At December 31, Ortiz Corporation reports net income of $480,000. Prepare the entry to close net income.

Q: Fouts Corporation purchased 2,000 shares of its $10 par

Fouts Corporation purchased 2,000 shares of its $10 par value common stock for $130,000 on August 1. It will hold these shares in the treasury until resold. On December 1, the corporation sold 1,200 s...

Q: On May 10, Jack Corporation issues 2,000 shares of

On May 10, Jack Corporation issues 2,000 shares of $10 par value common stock for cash at $18 per share. Journalize the issuance of the stock.

Q: On June 1, Noonan Inc. issues 4,000 shares

On June 1, Noonan Inc. issues 4,000 shares of no-par common stock at a cash price of $6 per share. Journalize the issuance of the shares assuming the stock has a stated value of $1 per share.

Q: Lei Inc.’s $10 par value common stock is actively

Lei Inc.’s $10 par value common stock is actively traded at a market price of $15 per share. Lei issues 5,000 shares to purchase land advertised for sale at $85,000. Journalize the issuance of the sto...