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Elementary Accounting Problems

Elementary Accounting Problems


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About the Book

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1914 edition. Excerpt: ...capital stock until same is issued. A memorandum or pro-forma entry is made to record the organization of the company and to give the details concerning the amount, number of shares and par value of the capital stock authorized. The first entry affecting the capital stock account on the general ledger is made in connection with the purchase of the business property and goodwill of the copartnership of Jones & Hackett. Subsequent entries are made in the capital stock account in connection with the sale of 1,200 shares of the common stock for cash. The capital stock accounts, namely, preferred and common, show only the capital stock outstanding. The capital stock authorized is not shown in any way on the general books. The disadvantages of the pro-forma method were discussed in problem No. 11. In connection with the purchase of the business property and goodwill of Jones & Hackett, an account called "Plant and Sundry Assets" is charged with the amount of the purchase price agreed upon. Jones & Hackett as vendors are credited with the amount. It will be noted in the journal entry covering this transaction that the directors have fixed the value of the business acquired at $400,000. This is in order that the stock issued for said property may be fully paid and not liable to any further call. In New York state the judgment of the directors, in the absence of fraud in the transaction, is conclusive as to the value of the property purchased. The law further states, "In all statements and reports of the corporation, by law required to be published or filed, this stock shall not be stated or reported as being issued for cash paid but shall be reported as issued for property purchased." For the purpose of getting the...


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Product Details
  • ISBN-13: 9781152514959
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 64
  • Spine Width: 3 mm
  • Width: 189 mm
  • ISBN-10: 1152514954
  • Publisher Date: 01 Apr 2013
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 132 gr

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