posted by gdlola on .
Incentive Corporation was organized in 2009 to operate a financial consulting business. The charter authorized the following capital stock: common stock, par value $4 per share. 12,000 shares. During the first year, the following selected transactions were completed:
a - Issued 6,000 shares of common stock for cash at $20 per share.
b - Issued 2,000 shares of common stock for cash at $23 per share.
1 - show the effects of each transaction on the accounting equation.
2 - Give the journal entry required for each of these transactions.
3 - Prepare the stickholders' equity section as it should be reported on the 2009 year-end balance sheet. At year-end, the accounts reflected a profit of $100.
4 - Incentive Corporation has $30,000 in the company's bank account. Should the company declare cash dividends at this time? Explain.
I AM LOST. Can someone please instruct me on how to go about solving this question?
1) Both assets and SE go up as cash goes to the company and more shares are bought.
Stocks issued on par $24,000
Gain on c/s $96,000
, how much manufacturing overhead was allocated to production? Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
Total manufacturing overhead estimated at the beginning of the year: $140,000
Total direct labor costs estimated at the beginning of the year: $350,000
Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours
Actual manufacturing overhead costs for the year: $159,000
Actual direct labor costs for the year: $362,000
Actual direct labor hours for the year: 12,400 direct labor hours