Beamsley Corporation was organized in 2014 to operate a financial consulting business. The charter authorized 12,000 common
Question:
a. Issued 6,000 shares of common shares for cash at $20 per share.
b. Issued 2,000 shares of common shares for cash at $23 per share.
Required
1. Show the effects of each transaction on the accounting equation.
2. Give the journal entry required for each of these transactions.
3. Prepare the shareholders' equity section as it should be reported on the 2014 year-end balance sheet. At year-end, the accounts reflected a profit of $100.
4. Beamsley Corporation has $30,000 in the company's bank account. Should the company declare cash dividends at this time? Explain.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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