Hello.. can I get the answer for requirement D and E please that is shown in the attached picture I Normal1 No Spac. HeadingHeading 2TitleSubtitleSubtle Em..EmphaseFontParagraphStylesScenario:Matthew Mulatto and his brother John Mulatto plans to open a business. The major decision they face is how to organizethe business. They expect to generate a massive profit during the first year. Although they have enough to start thebusiness now as a partnership, they believe cash flow may be an issue as they grow. They believe that the corporate formof 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) 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 thestock of the corporation?e) What does the term par value of stock mean?

Answered: d) Which characteristic of a…

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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…
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. Owners are desirous of comparing serval 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 common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information Issued $100,000 shares of…
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. Issued 100,000 shares of common stock. Stock has par value of $0.60 per share and was issued at $30.00 per share. Issued 14,000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 260,000 shares of common stock for land with an appraised value of $650,000.00 and a building with an appraised value of $500,000.00. Earned Net income $900,000.00. Paid dividends to preferred shareholders as well as $2 per share to common stockholders.
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) 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?
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. 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? 2. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding…
A & B approach C about forming a general partnership. A & B will each contribute $10,000 cash as start-up funds. C is to contribute no cash but instead work full-time in the business. A & B will work only part-time in the business. A, B, & C will share profits equally. C believes this is a great opportunity for him as he has no investment to risk by going into business with A & C. Is he correct?
Scenario 1: Alex and Jamie decide to start a consulting firm named "Strategic Advisors." Alex contributes$40,000 in cash, and Jamie contributes $60,000 worth of equipment. They agree to share profits andlosses equally.1) What are the initial journal entries to record the formation of Strategic Advisors?2) How would the capital accounts of Alex and Jamie look after these entries
NO HANDWRITING OR PICTURE FORMAT PLEASE - If possible Steve Osbourne is considering opening a business, but the major decision faced is how to organize the business. Steve anticipates generating a massive profit during the first year and that the following years should be relatively profitable. Although he has enough to start the business now as a partnership, he believes cash flow may be an issue as the company grows. Steve believes that the corporate form of operation will be his best option and have hired you as a consultant and seek your advice. The company is desirous of comparing serval financial transactions and possible outcomes to assist in guiding its decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as Osbourne Corporation. The company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. Issued 45,500 shares of common stock. Stock has par value of 0.30…
Instructions: Please answer it with complete solution. Thank you so much!! Rachelle, Patrick, and Lorreyn formed the RPL Professional Partnership on April 1, 20X2, by contributing capital. They agreed that Lorreyn would receive P20,000 as manager of the firm, and the remainder will be divided according to the profit ratio of 34%, 44%, 22%, respectively. At the end of the month, the company had a net loss of P900,000. Discuss how the loss shall be distributed in no more than five (5) sentences.
Pallabi Sekhar Associates, a partnership firm, made these transactions. Find out the effect on Assets, Liabilities and Capital of the Firm in an Accounting Equation form. 1. Business started with $ 75,000 as capital introduced. 2. Taken a Loan from Rajesh and Purchased a computer worth $3,750. 3. Additional Capital Invested $ 15,320 in the form of Equipment. 4. Paid Rent in advance $ 22,500 by cash only. 5. Bought a Generator of value $ 25,000 from Harish Ltd. by taking loan from Rajesh again. Withdrawn an amount of $ 10,500 by the Partner for personal purposes. Deposited into Firm's Bank an amount of $ 25,000.
Alyssa who is currently operating a machine shop is considering Dindin, an excellent employee, to be her partner. Unfortunately, Dindin could not afford to invest cash of P 500,000 which Alyssa needs to expand her business. As consultant, you asked Alyssa to answer some questions before giving an advice on whether Dindin should be taken in as partner. Details : 1.What is your present annual net income? P 450,000 2. Can you avail of a loan of P 500,000? Yes 3. What bank and what is the interest rate? Land Bank @ 17% 4. With the new equipment, how much additional income will it generate? P 450,000 5. In how many year are you going to pay the loan? 5 years 6. How much are you willing to pay Dindin as salary or profit? P 160,000 next is what are the answers of the following questions? Net income with the new equipment Less (Minus) interest charge on loan liability Net income after the interest charge Less (Minus) share of Dindin in the profits Share…