After having been a partner in a partnership for five years, you decided to leave and form a corporation. Having completed the necessary organization steps and formed a board of directors, you sold stock to raise the necessary capital. You have retained control of 51 percent of the stock. One day a former partner (who owns 20 percent of the stock in your corporation) sends you a bill for $ 10,000 for an advertising campaign. He hired the public relations company to increase the visibility of the corporation in which he is a stockholder. Are you going to pay the $ 10,000 bill your former partner incurred? Why or why not?
Answer to relevant QuestionsNow that you have learned about the issuance of stock, take a look at the General Electric Company. You should be able to use what you have learned and the information provided in a company’s annual report to find the ...8. Classify each of the following accounts as asset, liability, stockholders’ equity, revenue, or expense and indicate the normal balance of each account. a. Paid- in Capital in Excess of Par Value b. Preferred 7 Percent ...Parker Flowers in Bloom Corporation has outstanding 24,500 shares of $ 10 par, 4 percent cumulative preferred stock, and 78,500 shares of $ 2 par value common stock. The corporation declares and pays dividends as follows: ...The trial balance for Damon’s Fly Fishing Tackle, Inc., dated December 31 of this year, follows. To reduce the number of accounts in the trial balance, Selling Expenses (control) is used in place of all selling expenses. ...Your friend has been telling you that she knows someone in a publicly traded corporation who gives her information as to when to buy and sell stock in that corporation. Consequently, your friend has made quite a bit of ...
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