Attorneys have helped Mikko Company incorporate and billed the company €12,000 for their services. They agree to accept 5,000 shares of €2 par value ordinary shares in payment of their bill. At the time of the exchange, there is no established market price for the shares. The company recorded: Accounts Impact Values Equity Capital Capital

Attorneys have helped Mikko Company incorporate and billed the company €12,000 for their services. They agree to accept 5,000 shares of €2 par value ordinary shares in payment of their bill. At the time of the exchange, there is no established market price for the shares. The company recorded: Accounts Impact Values Equity Capital Capital

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...

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Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
The owner of SURIA Trading, a proprietorship business, Puan Alia, and her friend Encik Irfan formed a company named PINK Sdn. Bhd. and issued to themselves 5,000 ordinary shares each at par value RM1 for cash. The purpose of forming Pink Sdn. Bhd. is to buy over the business of SURIA Trading on 1 January 2021. PINK Sdn. Bhd. issued to Puan Alia 750,000 ordinary shares at a premium of 10% to satisfy the purchase of SURIA Trading. PINK Sdn. Bhd. paid the liquidation expenses of SURIA Trading which amounted to RM15,000. The formation expenses of PINK Sdn. Bhd. were RM2,500. The financial position of SURIA Trading on 1 January 2021 was as follows: RM RM Capital – Puan Alia 600,000 Current liabilities Trade payables 40,000 640,000 Non-current assets Office equipment (cost) 600,000 Accumulated depreciation (200,000) 400,000 Furniture and fittings (cost) 130,000…
Attorneys have helped Mikko Company incorporate and billed the company €12,000 for their services. They agree to accept 5,000 shares of €2 par value ordinary shares in payment of their bill. At the time of the exchange, there is no established market price for the shares. The company recorded: (select one for each colomn) Accounts Impact Values Equity [Cash / Share capital - ordinary / Legal fee / Organization expense] [Increase / Decrease] [2,000 / 5,000 / 12,000 / 10,000] Capital [Share premium - ordinary / Cash / Retained earnings / Share capital - ordinary] [Decrease/Increase] [12,000 / 10,000 / 5,000 / 2,000] Capital [Organization expense / Share premium - ordinary / Share capital - ordinary / Cash] [Decrease / Increase] [5,000 / 12,000 / 2,000 / 10,000]
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