Question

Suppose Yummy Treats Bakery issues common stock in exchange for a building. Yummy Treats Bakery should record the building at

  • the par value of the stock given.
  • its book value.
  • its market value.
  • a value assigned by the board of directors.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Identify and describe the approach the FASB requires forreporting changes in accounting principles.

A: Accounting method: A set of rules and guidelines through which the organization records and analyzes...

Q: Journalizing issuance of stock—no-par Wolcott Corporation issued 5,000 shares of no-par common stock...

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to r...

Q: When the amount paid for land is 36,000 and the amount paid expenses is 10,000 the balance in total ...

A: Assets: These are the resources owned and controlled by business and used to produce benefits for th...

Q: What are “liability gains and losses,” and how are theyaccounted for?

A: Liability gains and losses arise from the unexpected increase or decrease in the value of projected ...

Q: When a company issues a stock dividend which of the following would be affected? a. Earnings per sha...

A: Stock dividends:Stock dividends are the number of shares issued by a company to the existing shareho...

Q: Explain the importance of a contract in the revenue recognitionprocess.

A: Click to see the answer

Q: how do i understand in accounting whats to be decreased and whats to be increased?

A: Account: Account is the basic record that reports all changes in the value of particular assets, lia...

Q: Determining the present value of bonds payable and journalizing using the effective-interest amortiz...

A: Requirement 1:Calculate the amount that company receive upon the issuance of bonds.

Q: Late one Thursday afternoon, Joy Martin, a veteran audit manager with a regional CPA firm, was revie...

A: 1. 

Q: Which characteristic of a corporation is a disadvantage? Mutual agency Double taxation Limited liab...

A: Corporation: The form of business entity ,which is incorporated by state law into a separate legal e...

Q: Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed m...

A: The correct answer is $464,120.

Q: Ray Solutions decided to make the following changes in its accounting policies on January 1, 2016: a...

A: The given situation is a change in the accounting principles from cash basis of accounting to accrua...

Q: In 2016, Western Transport Company entered into the treasury stock transactions described below. In ...

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issu...

Q: On December 12, 2016, an investment costing $80,000 was sold for $100,000. The total of the sale pro...

A: The error got rectified by passing the rectification entry in which cash is debited on account of sa...

Q: The two basic sources of stockholders’ equity are assets and equity. preferred and common. retained...

A: Stockholder’s equity:It represents the amount of investment made by the owner in the business.

Q: Wolfgang Kitchens has always used the FIFO inventory costing method for both financial reporting and...

A: 1. 

Q: What is the nature of a sale on consignment?

A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment th...

Q: The Peridot Company purchased machinery on January 2, 2014, for $800,000. A five-year life was estim...

A: Accounting ChangesAccounting changes are the alterations made to the accounting methods, accounting ...

Q: On March 1, 2016, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000...

A: Step 1: Record the journal entry for issuance of bonds on March 1, 2016:

Q: State how each of the following items is reflected in thefinancial statements.(a) Change from FIFO t...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: In 2014, Fogg, Inc., issued $10 par value common stock for $25 per share. No other common stock tran...

A: The correct answer is Option (b).

Q: Wardell Company purchased a mini computer on January 1, 2014, at a cost of $40,000. The computer has...

A: 1.Prepare adjusting entries: 

Q: Below are three independent and unrelated errors. a. On December 31, 2015, Wolfe-Bache Corporation f...

A: a. (1) Identify the effect of each error on the income statement and the balance sheet in the year 2...

Q: Units of production data for the two departments of Atlantic Cable and Wire Company for July of the ...

A: Equivalent units of production refer to the work done on the units at the end of an accounting perio...

Q: The following information concerns production in the Forging Department for June. The Forging Depart...

A: The equivalents units of production of 4,020 units is calculated by adding the units of goods transf...

Q: Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires th...

A: Requirement 1: Prepare the work in process inventory filling department ledger from April to May of ...

Q: Identify the major disclosures in the auditor's report and understand management's responsibilities ...

A: An audit is an independent examination of the books of the accounts and financial statements whether...

Q: The balance sheet of Indian River Electronics Corporation as of December 31, 2015, included 12.25% b...

A: Click to see the answer

Q: Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufac...

A: Total estimated overheads.

Q: Millington Materials is a leading supplier of building equipment, building products, materials & tim...

A: 1. 

Q: Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January....

A: Calculate production cost report for January using average cost method of Company DC as shown below:...

Q: What is a performance obligation? Under what conditionsdoes a performance obligation exist?

A: Click to see the answer

Q: Selection of most profitable product. Body Image, Inc., produces two basic types of weight-lifting e...

A: Operating income: The outcome of deduction of operating expense and depreciation from the gross inco...

Q: An example of intraperiod income tax allocation is a. Reporting an extraordinary item in the income ...

A: Intra-period tax allocation: An intra-period tax allocation is an allocation of tax expense between ...

Q: Companies occasionally sell more than one security for a single price. How is the issue price alloca...

A: Issue price:Issue price is the price at which the securities such as common stock, preferred stocks,...

Q: In late 2015, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of ...

A: 1. Prepare journal entries to record the given transactions.Record the issuance of common shares.

Q: Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum, and alumina. The fol...

A: Explain the answer for the given requirements.

Q: PARRISH 2-7 SOLVING FOR T-ACCOUNTS I know what T-Accounts are and how they work.  I simply need you ...

A: Calculate the ending balance of salary expense.

Q: Need help with "C, D, E, F, G, and H"

A: As per authoring guideline the three sub-parts of question are answered. Respost the question specif...

Q: The long-term liability section of Twin Digital Corporation’s balance sheet as of December 31, 2015,...

A: Requirement 1:

Q: Analysis of growth, price-recovery, and productivity components (continuation of 12-19). An analysis...

A: Cost Leadership Strategy: This is a strategy in which a firm distinguishes it by lowering the market...

Q: The costs of legal, promotional, and accounting services necessary to effect the sale of shares are ...

A: Share issue cost: Cost such as legal fee, promotional charge, and accounting services incurred for t...

Q: What are the two basic methods of accounting for longtermconstruction contracts? Indicate the circum...

A: Click to see the answer

Q: In its December 31, 2016, balance sheet, Shin Co. had income taxes payable of $13,000 and a current ...

A: Click to see the answer

Q: What is comprehensive income? How does comprehensive income differ from net income? Where do compani...

A: Comprehensive income:Comprehensive income represents the amount of net income plus other comprehensi...

Q: When a company records a deferred tax asset, it may need to also report a valuation allowance if it ...

A: 1.FASB ASC 740-10-30-17 citation named as “Income Taxes–Overall–Initial Measurement Establishment of...

Q: Dropping a product line, selling more tours. Nelson River Tours, a division of Old World Travel, off...

A: 1. State the effect that the company would drop the advanced tours.