tailieunhanh - Accounting and Bookkeeping workbook for dummies Cheat Sheet_1

Các hoạt động đầu tư và tài chính năm của 1 công ty, mới kinh doanh mới thành lập được tóm tắt như sau: • Nhận được $ từ công ty liên doanh 1 (VC) vốn; trong trao đổi, các doanh nghiệp đã ký 1 lưu ý | More free books @ Chapter 3 Getting Started in the Bookkeeping Cycle 67 Q. The investing and financing activities for the year of a new start-up business corporation are summarized as follows Received 10 000 000 from a venture capital VC firm in exchange the business signed a 5 million note payable interest-bearing of course to the VC firm and issued shares of stock to the VC firm equal to 10 percent of the total number of shares of stock issued by the business Purchased various long-term operating assets for total cash payments of 6 000 000 Make the journal entries for these investing and financing activities. A. The journal entries for these investing and financing activities are as follows Cash 10 000 000 Notes Payable 5 000 000 Owners Equity Invested Capital 5 000 000 Property Plant Equipment 6 000 000 Cash 6 000 000 One-half of the money invested in the startup business by the VC firm is secured by a note payable on which the business has to pay interest. This transaction is recorded in the notes payable liability account to indicate that the business has the legal obligation to pay interest and to pay the loan at its maturity date. The other half of the money that the VC firm put in the business is attributed to the account for capital stock shares issued by the business. The account title property plant and equipment is a generic title for long-term operating assets. The business would maintain more-specific accounts for each major asset purchased such as buildings machinery vehicles and so on. 29. A business corporation needed more capital to expand and grow so it issued additional stock shares for a total of 25 000 000. What journal entry should be made for this financing transaction Solve It 30. A business has had a very good year its 58 000 000 net income for the year is an all-time high. Being in a generous mood its board of directors declares a whopping cash distribution of 30 000 000 based on the business s record-setting .