Please answer requirement 1 parts d and e.Please note that the full question is attached.Thank you. • Exchangedshares of common stock for land with an appraised value of $and a building with an appraised value of $(please refer to table below and useonly the info in line with your surname initial (T) in the blank/underlined space)# of shares issuedValue of land Value of Building450,000.00500,000.00650,000.00700,000.00350,000.00500,000.00Surname InitialА, Р , Е, VС, О, R, YК, Q, М, FS, W, G, ZD, T, L, UN, B, J, X, H100,000 $ 250,000.00 $120,000 $ 300,000.00 $160,000 $ 400,000.00 $200,000 $ 500,000.00 $220,000 $ 600,000.00 $260,000 $ 650,000.00 $Earned Net income $(please refer to table below and use only the info in linewith your surname initial (T) in the blank/underlined space)Surname InitialNet IncomeА, Р I, Е, VC, O, R, YК, Q, М, FS, W, G, ZD, T, L, UN, B, J, X, H$500,000.00600,000.00650,000.00750,000.00820,000.00900,000.00$$$$$Paid dividends to preferred shareholders as well as $2 per share to common stockholders.Using the info above and as a guide:A. Prepare the journal entries with narrations to record the following:The issuances of stock.Close out net income to retained earnings.Dividend paid.Close out dividend to retained earnings.B. Prepare Mason Company's Stockholders equity section of the balance sheet at December 31,2015. (Hint!!!!!!!) The following information must be clearly stated/shown:information on par values,the number of shares authorized and issued where necessary.the sub total for the total paid in capital.Retained earnings.total stockholders' equity. Scenario:Mark Mason and his brother Luke Mason plans to open a business. The major decision they face is howto organize the business. They expect to generate a massive profit during the first year. Although theyhave enough to start the business now as a partnership, they believe cash flow may be an issue as theygrow. They believe that the corporate form of operation will be best option. They have hired you as aconsultant and seekyouradvice.Requirements:1. Answer the following questions for the Mason brothers.a) How are paid-in-capital and retained earnings:Similar?Different?b) What are the main categories of paid-in capital?c) When does a company declare a cash dividend?d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or herinvestment in the stock of the corporation?e) What does the term par value of stock mean?2. The owners are desirous of comparing serval financial transactions and possible outcomes toassist in guiding their decision-making process. They assume that the company will be formed onJanuary 1, 2015 and that Mason Company's charter will authorize 1,000,000 shares of commonstock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked you toprepare the company's journal entries and statement of owner's equity based on the followinginformation which is grouped according to your surname name initial (T). (Hint!!!! Examplesurname Manuel will use the initial M and that person should only use the info presentedin line with the heading with their surname initial. Please use information in the row withletter (T)Issuedshares of common stock. Stock has par value ofper share and wasissued at $per share. (please refer to table below and use only the info in linewith your surname initial (T) in the blank/underlined space)# of shares issued5,000 $15,000 $45,500 $65,000 $80,000 $100,000 $Surname InitialPar valueIssue Price0.01 $0.10 $0.30 $А, Р, , Е, VC, O, R, YК, Q, М, FS, W, G, ZD, T, L, UN, B, J, X, H30.0030.0030.000.40 $30.000.50 $0.60 $30.0030.00Issuedshares of preferred stock at par value as payment in exchange for legalservices. (please refer to table below and use only the info in line with your surnameinitial (T) in the blank/underlined space)Surname Initial# of shares issuedА, Р, [, Е, VС. О, R, YК, Q, M, FS, W, G, ZD, T, L, UN, B, J, X, H2,0005,0008,00010,00012,00014,000

Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

1. Answer the following questions for the Mason brothers. a) How are paid-in-capital and retained earnings: Similar? Different? b) What are the main categories of paid-in capital? c) When does a company declare a cash dividend? d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? e) What does the term par value of stock mean?

1. Answer the following questions for the Mason brothers. a) How are paid-in-capital and retained earnings: Similar? Different? b) What are the main categories of paid-in capital? c) When does a company declare a cash dividend? d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? e) What does the term par value of stock mean?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 34P

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Scenario: Matthew Mulatto and his brother John Mulatto plans to open a business. The major decision they face is how to organize the business. They expect to generate a massive profit during the first year. Although they have enough to start the business now as a partnership, they believe cash flow may be an issue as they grow. They believe that the corporate form of operation will be best option. They have hired you as a consultant and seek your advice. Requirements: Answer the following questions for the Mulatto brothers. d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? e) What does the term par value of stock mean?
Scenario: Matthew Mulatto and his brother John Mulatto plans to open a business. The major decision they face is how to organize the business. They expect to generate a massive profit during the first year. Although they have enough to start the business now as a partnership, they believe cash flow may be an issue as they grow. They believe that the corporate form of operation will be best option. They have hired you as a consultant and seek your advice. Requirements: 1. Answer the following questions for the Mulatto brothers. a. Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? b. What does the term par value of stock mean? The owners are desirous of comparing several financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company’s charter will authorize 1,000,000 shares of…
Scenario: Matthew Mulatto and his brother John Mulatto plans to open a business. The major decision they face is how to organize the business. They expect to generate a massive profit during the first year. Although they have enough to start the business now as a partnership, they believe cash flow may be an issue as they grow. They believe that the corporate form of operation will be best option. They have hired you as a consultant and seek your advice. Requirements: 1. Answer the following questions for the Mulatto brothers. 2. How are paid-in-capital and retained earnings: Similar? Different? 3. What are the main categories of paid-in capital? 4. When does a company declare a cash dividend? 5. Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? 6. What does the term par value of stock mean? The owners are desirous of comparing several financial transactions and possible outcomes to…
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