You have a great idea and want to form a corporation to produce and sell hot...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You have a great idea and want to form a corporation to produce and sell hot air balloons. You think this is the next big opportunity in air travel. You go to the bank to obtain a loan. Your banker gives you the cold shoulder and turns down your loan application. You talk to family and friends about your idea of forming a corporation. However, they think you are full of hot air and will not lend nor invest in your venture. If you can find investors the corporation will have 100,000 shares of authorized common stock with a $1.00 par value. You decide to raise funds online via "Crowd Funding There are a number of ways to raise money in the formation of the corporation via "Crowd Funding". Journalize each of the following: 1. The funds received do not have to be returned and the contributor does not receive stock in the company nor merchandise. The corporation receives $100,000 from the generosity of the contributors. 2. The contributors paid $100,000 and received a total of 60,000 shares of common stock. 3. The contributors paid $100,000 and receive hot air balloon kits that cost the corporation $52,000. 4. The contributors paid $100,000 and when production begins the contributors will receive hot air balloon kits. 5. The contributors paid $100,000 and the corporation is required to repay the funds out of earnings of the business plus interest of 3% per year. You have a great idea and want to form a corporation to produce and sell hot air balloons. You think this is the next big opportunity in air travel. You go to the bank to obtain a loan. Your banker gives you the cold shoulder and turns down your loan application. You talk to family and friends about your idea of forming a corporation. However, they think you are full of hot air and will not lend nor invest in your venture. If you can find investors the corporation will have 100,000 shares of authorized common stock with a $1.00 par value. You decide to raise funds online via "Crowd Funding There are a number of ways to raise money in the formation of the corporation via "Crowd Funding". Journalize each of the following: 1. The funds received do not have to be returned and the contributor does not receive stock in the company nor merchandise. The corporation receives $100,000 from the generosity of the contributors. 2. The contributors paid $100,000 and received a total of 60,000 shares of common stock. 3. The contributors paid $100,000 and receive hot air balloon kits that cost the corporation $52,000. 4. The contributors paid $100,000 and when production begins the contributors will receive hot air balloon kits. 5. The contributors paid $100,000 and the corporation is required to repay the funds out of earnings of the business plus interest of 3% per year.
Expert Answer:
Answer rating: 100% (QA)
Heres how you would journalize each of the scenarios The funds received do not have to be returned a... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these programming questions
-
Assume that to the _power_of is a function that expects two integer arguments and returns the value of the first argument raised to the power of the second argument. Write a statement that calls...
-
How do pioneering enterprises effectively orchestrate Organizational Development interventions that synergistically align with emergent technological paradigms, thereby catalyzing a transformative...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Please do this two questions, please step by step 9. 11. 0/1 points | Previous Answers SEssCalcET1 12.1.020. Calculate the iterated integral. SS 5xyx + y dy dr = || Need Help? Read It Submit Answer...
-
Add a second button to your double.html page from Exercise 5.19. Each time this new button is clicked, the value in the text box named number-Box should be halved. For example, if the box contains...
-
Joes Twenty-four Seven Laundromat has the following jobs waiting to be processed. The first step of the process includes washing and drying the clothes; the second step is pressing the clothing. Joe...
-
The armature of a variable-speed electric motor, of mass \(200 \mathrm{~kg}\), has an unbalance due to manufacturing errors. The motor is mounted on an isolator having a stiffness of \(10 \mathrm{kN}...
-
I thought the Internet would be an ideal way to distribute our products. We've had a lot of success with our direct sales, but now we can reach a much larger audience. The baskets we make and sell...
-
Outline any 4 FOUR Ethical problems that are likely to confront an MNC 2. Suggest what guidelines an MNE/MNC may take to ensure effective implementation of Ethical standards in its overseas...
-
You are the contracting officer for a CPFF service contract for routine and emergency maintenance of testing equipment in the amount of $1,200,000. The contractor is not required to provide any...
-
if you are or were an HR professional or a manager, discuss how you should conduct effective interviews. How would you go about the interview? What do you need? What should the interviews include?...
-
Tell what the output value is for each of the function machines in Problems 15-20 for (a) 4 , (b) 6 , (c) -8 , (d) \(\frac{1}{2}\), (e) \(t\) *L Y-Y 2222 2x 2x-1 50 75 2x-1
-
What is a system of linear equations?
-
If \(g(x)=2 x\), find a. \(g(100)\) b. \(g(-25)\) c. \(g(m)\)
-
If \(A x^{2}+C y^{2}+D x+E y+F=0\), for Problems 9-13, then list conditions on the constants to assure that the indicated graph results. a line \(A=C=0\)
-
Find the value of each function in Problems 14-17. \(F(x)=5 x+25\); find \(F(10) .\)
-
Newtons law of cooling is given by theta =theta.o e-^kt, where the excess of temperature at zero time is theta.o oC and at timer t seconds is theta. oC. Determine the rate of change of temperature...
-
Use of the contraceptive Depo Provera appears to triple women's risk of infection with chlamydia and gonorrhea , a study reports today. An estimated 20 million to 30 million women worldwide use Depo...
-
Amy is a calendar-year taxpayer reporting on the cash basis. Please indicate how she should treat the following items for 2012: a. She makes a deductible contribution to an IRA on April 15,...
-
In 2012, Margaret and John Murphy are married taxpayers who file a joint tax return with AGl of $25,000. During the year they incurred the following expenses: Hospitalization insurance...
-
Diego, age 28, married Dolores, age 27, in 2012. Their salaries for the year amounted to $46,479 and they had interest income of $3,500. Diego and Dolores' deductions for adjusted gross income...
-
What is thermodynamics?
-
An astronaut weighs \(800 \mathrm{~N}\) on the earth's surface where the acceleration of gravity is \(g=9.83 \mathrm{~m} / \mathrm{s}^{2}\). The mass and the radius of the moon are \(7.4 \times...
-
Explain the scope and limitations of thermodynamics.
Study smarter with the SolutionInn App