Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mena Company was established on January 1. The corporate charter authorized 1,000,000 shares of $10 par value common stock. During the first month of opration,

image text in transcribedimage text in transcribed Mena Company was established on January 1. The corporate charter authorized 1,000,000 shares of $10 par value common stock. During the first month of opration, the corporation issued 400 shares to its attorneys in payment of a $7,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include: A. A debit to Organization Expenses for $6.000. B.A debit to Paid-in Capital in Excess of Par Value Common Stock for $3,000 CA credit to Paid in Capitalin Excess of Par Value. Common Stock for $4,000. D.A credit to Common Stock for $4,000. Use the following company information to calculate net cash provided or used by investing activities: (1) Equipment with a book value of $87,500 and an original cost of $150.000 was sold at a loss of $8,500. (2) Paid $31,000 cash for a new truck. (3) Sold land costing $16,000 for $18,000 cash, realizing a $2,000 gain. (4) Purchased treasury stock for $30,500 cash. (5) Long-term investments in stock are sold for $20,500 cash, realizing a gain of $1,750

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial And Managerial Accounting The Financial Chapters

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

6th Edition

978-0134486840, 134486838, 134486854, 134486846, 9780134486833, 978-0134486857

More Books

Students also viewed these Accounting questions

Question

Solve the following 1,4 3 2TT 5x- 1+ (15 x) dx 5X

Answered: 1 week ago

Question

How will you proceed? mk4

Answered: 1 week ago