when corporations issue stock in exchange for professional services, what account(s) should be debited and what...
Homework Answers
When the stock is issued, then the particular stock (common or preferred) account is credited in all situations, with amount in excess of par value also credited to paid in capital in excess of par value of stock.
When the stock is issued in exchange for professional services, then those services account is debited, since it represents the costs incurred. If it is related to issuing the stock then organization expenses should be debited. If it is related to any other service then that service should be debited with the full amount of service fees. Relevant stock account should be credited. The difference between the par value and the service fees should be credited to the paid in capital in excess of par value account.
To sum up, required journal entry is:
Debit Organisation expense or Professional service expense
Credit Common stock
Credit Paid in capital in excess of par value
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when
corporations issue stock in exchange for professional services,
what account(s) should be debited and what...
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For each transaction, indicate the account or accounts that should be debited and credited. Accounts 1. Cash 2. Accounts Receivables 3. Prepaid Insurance 4. Office Supplies 5. Automobiles 6. Land 7. Accounts Payable 8. Income Taxes Payable 9. Notes Payable 10. Capital Stock 11. Retained Earnings 12. Service Revenue 13. Wage and Salary Expense 14. Utilities Expense 15. Income Tax Expense Transactions Debited Credited Example: Purchased office supplies for cash 4 1 a. Issued capital stock for cash. __ __...
Paid $1,800 for six month insurance policy. When journalizing this transaction the account will be debited...
Paid $1,800 for six month insurance policy. When journalizing this transaction the account will be debited for $1,800 and the account will be credited for $1,800. Question 20 3 pts Purchased $9,800 of supplies on account. When journalizing this transaction the account will be debited for $9,800 and the account will be credited for $9,800. Question 21 3 pts Recorded $2,250 of fees earned on account. When journalizing this transaction the account will be debited for $2,250 and the account...
Required For each of the following independent events, identify the account that would be debited and...
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2. In order to close the dividends account, the: a. Dividend account should be debited b....
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Transactions for the Sheldon Cooper Company, which provides welding services, for the month of June are...
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71) When the Withdrawals account is closed, A) Owner's Capital will be debited. B) Income Summary...
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Paid $1,800 for six month insurance policy. When journalizing this transaction the account will be debited for $1,800 and the account will be credited for $1,800. Question 20 3 pts Purchased $9,800 of supplies on account. When journalizing this transaction the account will be debited for $9,800 and the account will be credited for $9,800. Question 21 3 pts Recorded $2,250 of fees earned on account. When journalizing this transaction the account will be debited for $2,250 and the account...
Required For each of the following independent events, identify the account that would be debited and the account that would be credited. The accounts for the first event are identified as an example, Account Debited Cash Account Credited Common stock Event a. Received cash by issuing common stock b. Received cash for services to be performed in the future. c. Paid salaries payable. d. Provided services on account. e. Pald cash for operating expenses. 1. Purchased supplies on account. 9....
2. In order to close the dividends account, the: a. Dividend account should be debited b. Dividend account should be credited c. Retained Earnings account should be credited d. Income Summary account should be debited 3. The income statement for the year 2018 of Fugazi Co. contains the following information: $6980 Revenues Expenses: Salaries and Wages Expense $3030 Rent Expense 1560 730 Advertising Expense 290 Supplies Expense 110 Insurance Expense 5720 Total expenses S 1260 Net income The entry to...
Transactions for the Sheldon Cooper Company, which provides welding services, for the month of June are presented below. Sheldon Cooper invests $4,000 cash in exchange for shares of common stock in a small welding business. Purchases equipment on account for $1.200. 3 $800 cash is paid to landlord for June rent. Bills P. Leonard $300 after completing welding work done on account June 1 2 12 Identify the accounts to be debited and credited for each transaction. Account Debited Account...
71) When the Withdrawals account is closed, A) Owner's Capital will be debited. B) Income Summary will be debited. C) Income Summary will be credited Dj None of these are correct. 72) The Income Summary account debited and the expense accounts credited would be the result of Al closing the income Summary account--there is a net income. B) closing the revenue accounts c) closing the income Summary accounts - there is a net loss. D) closing the expense accounts 73)...
Bills / Bill Payments / Deposits / Sales For this exercise make the following assumptions: • Use Undeposited Funds for all receipts. • Cash Account Checking • Sales is the Income Account for Both Sales of Inventory and Sales of Services Create Invoice is used in QuickBooks when services are rendered on account. What account(s) is(are) debited? What account(s) is(are) credited? When Record Deposits is used in QuickBooks, What account(s) is(are) debited? What account(s) is(are) credited? When Pay Bills is...
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