Question: Partners Dempsey and Perry wish to avoid the unlimited personal

Partners Dempsey and Perry wish to avoid the unlimited personal liability of the partnership form of business, so they are incorporating the company as D & P Services, Inc. The charter from Ontario authorizes the corporation to issue 10,000 shares of 6%, preferred shares and 250,000 common shares. In its first month, D & P Services, Inc. completed the following transactions:
Jan 3 Issued 6,300 common shares to Dempsey and 3,800 shares to Perry, both for cash of $10 per share.
12 Issued 1,100 preferred shares to acquire a patent with a market value of $110,000.
22 Issued 1,500 common shares to other investors for $10 cash per share.
Requirements
1. Record the transactions in the journal.
2. Prepare the shareholders’ equity section of the D & P Services, Inc. balance sheet at December 31. The ending balance of Retained Earnings is $40,000.


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  • CreatedJuly 08, 2015
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