Question: Juke Joint Ltd., a private company, began operations on March 12 by issuing 5,000 common shares for $20 cash per share. On September 10, the

Juke Joint Ltd., a private company, began operations on March 12 by issuing 5,000 common shares for $20 cash per share. On September 10, the company issued 500 common shares in exchange for equipment with an appraised value of $9,500.

(a) Assuming the company uses ASPE, prepare a journal entry to record the September 10 transaction and provide a rationale for the value.

(b) How might your answer change if Juke Joint was a public company?

Step by Step Solution

★★★★★

3.52 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Sep 10 Equipment 9500 Common Shares 9500 The fair value of the equipment received has ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1208-B-C-A-P-C(1887).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Salieri Ltd. is a manufacturer of musical instruments that is controlled by Tony Antonio. Salieri Ltd. was originally a private company, but it became public in 20X0 when a substantial public share...

The Holiday Corporation, a private company, began operations on January I, 2011. During its first three years of operations, Holiday reported net income and declared dividends as follows: The...

In late July 2014, Mona Ltd., a private company, paid $2 million to acquire all of the net assets of Lubello Corp., which then became a division of Mona. Lubello reported the following statement of...

Bramble Ltd., a private company, began operations on March 12 by issuing 4,600 common shares for $25 cash per share. On September 10, the company issued 460 common shares in exchange for equipment...

Blue Ltd., a private company, began operations on March 12 by issuing 4,100 common shares for $25 cash per share. On September 10, the company issued 410 common shares in exchange for equipment with...

XYZ Corporation is a forward - thinking technology firm specializing in the creation and manufacturing of advanced electronic components. These components find their application across consumer...

Northern Nickel Explorers Ltd. (NNEL) is a start-up company, closely held by a small group of successful businesspeople, geologists, and engineers. NNEL is a junior mining company that explores for...

Northern Nickel Explorers Ltd. Northern Nickel Explorers Ltd. (NNEL) is a start-up company, closely held by a small group of successful businesspeople, geologists, and engineers. NNEL is a junior...

Compute basic and diluted EPS for 2011. During 2011, Quattro entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 20 million common...

A hotel chain has identically-sized resorts in five locations. The data that follow resulted from analyzing the hotel occupancies on randomly selected days in the five locations. ROW Caymen Pennkamp...

Consider a one-period closed economy of Kingdom of Bebbanburg that consists of numerous households that have identical preference structures, U(c, I), where c is the consumption, / is leisure. The...

When underwriting a mortage the lender will use to determine loan to vlaue ratio

3. Frannie must decide whether to buy a one-year bond today and another one a year from now, or buy a two-year bond today. In which of the following scenarios is she better off taking the first...

Fly-Buy Frisbees sells a wide variety of frisbees and uses a perpetual inventory system. On June 1, Fly- Buy Frisbees had five Fast Flying Frisbees on hand at a unit cost of $105. During June and...

You are given the following information for Amelia Company. All transactions are settled in cash. Returns are usually not damaged and are restored immediately to inventory for resale. Amelia uses a...

The records of Alyssa Company show the following amounts in its December 31 financial statements: Alyssa Company made the following errors in determining its ending inventory : 1. The ending...

JETA Company tiene un tiempo de ciclo de 3 das, utiliza una cuenta sin procesar y en proceso (RIP) y carga todos los costos de conversin al costo de los bienes vendidos. Al final de cada mes, se...

Assume that your parents wanted to have $180,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and...

As evidenced by Table 4 from Agarwal and Naik (2004, Risks and portfolio decisions involving hedge funds, Review of Financial Studies ) provided above: Explain the implications of hedge funds'...