Module $7$ Assignment

Complete the following problems in a separate Word document. Refer to the Module $7$ readings.

$1.$ In paragraph form, respond to the following questions. Do not give single word answers. Please explain by providing evidence of your answers.

Your corporation needs additional capital to fund an expansion. Discuss at least two of the advantages and two disadvantages of raising capital through the issuance of stock. Would debt be a better option? Why or why not?

What are some of the reasons a business owner might choose the corporate form of business?

You are a CPA who has been hired by a company to assist with their initial public offering of stock. Describe to the president of this company the two most significant values, market value and par value, associated with stock.

What is the correct term and definition for repurchased stock? Why would a company repurchase its own stock?

$2.$ You are an accountant working for a company that has recently decided to incorporate. The company has incurred $$4,300$ for attorney$$s fees, promotion costs, and filing fees with the state of incorporation as a part of organizing the corporate entity. Using the tabular summary, record these costs on March $13,$ assuming they are paid in cash. Remember to include a date each transaction, and an explanation for any changes in revenue and expenses.

$3.$ On November $12$th$,$ Nutritious Pet Food Company$$s board of directors declares a cash dividend of $$1\mathrm{.}00$ per common share, for shareholders of record on December $1$st$.$ On November $12$th$,$ the company has $12,000$ shares outstanding but $2,000$ shares are held as treasury shares. The company pays the dividend on December $14.$ Using a tabular summary, record the declaration, the date of record and the payment of the dividend. Remember to include a date on each transaction

$4.$ Winger Corporation was organized in March. It is authorized to issue $500,000$ shares of $$100$ par value $8\%$ preferred stock. It is also authorized to issue $750,000$ shares of $$1$ par value common stock. In its first year, the corporation has the following transactions:

Mar. $1$

Issued $10,000$ shares of preferred stock at $$115$ per share

Mar. $2$

Issued $120,000$ shares of common stock at $$12\mathrm{.}50$ per share

Jun. $12$

Issued $10,000$ shares of common stock at $$15$ per share

Aug. $5$

Issued $1,000$ shares of preferred stock at $$112$ per share

Sep. $17$

Purchased $2,000$ shares of its own common stock at $$10$ per share

Prepared a tabular summary to record the necessary transactions. Remember to include a date on each transaction.