Question

List advantages and disadvantages of a corporation BE11.1 (L01), K Hana Ascot is planning to start a business. Identify for Hana the advantages and disad- vantages of the corporate form of business organization, Journalise issuance of par value common ock BE11.2 (LO 2), AP on May 10, Pilar Corporation issues 2,500 shares of 55 par value common stock for cash at S13 per share. Journalize the issuance of the stock. Journalise issuance of no-par common stock BE11.3 (LO 21. AD On June 1. Forrest Inc. issues 3.000 shares of no-par common stock at a cash price of $7 per share. Journalize the issuance of the shares.

Answer 1

solution! Advantages and disadvantages of a Capoportion! As we all know that three are basically 3 types of business agent'stion? first is sole proprietan hip, then Partnership and last Cooperation. Among all 3 Corporation is the business entity renich is siprate from onnes. Here owners are shareholders, there shore of ownership is Corporate stock. Advantages. co Acumulation of resource at large levels Company Colleet lange lume of money. Whever need of more fund, no. of shareholds can increase (2) Continuity of existence - Members may go on Changing but that does not affect the contimity of company disadvantage i difficulty of formation: lot of legal formalities on required to be performed at the time of formation. (2) seperation of ownership from night! Shareholder play an insignifant role. in the working of the Company Control in the hands of those helis have thh no stance in the Company ( solution 2! - Journize the entry :- 1) Bank ak - or 32,500 To Share application To Jiberty Premium . (Being share appliction 12,500 20,000 Solution: 3 a Bank aka Dr 21,000 To share appliction 21,000 (Being share application I money speelved) - money revived) (11) [() share appplication 21,000 Shome application mong all-Dr 12,500 | To Share Capitel 21,000 To share Capital 12,00 (Being thare epitel (Being share Capital issued o issued Scared with Camcanner