A corporation received its charter and began business this year. The company is authorized to issue 500,000 shares of $100 par, 6%, noncumulative, nonparticipating preferred stock, and 1,000,000 shares of no-par common stock. The following selected transactions occurred during this year: Mar. 5Issued 250 shares of preferred stock for $102 cash per share. July 15Exchanged 750 shares of common stock for $12,000 in legal services incurred in the organization of the company. Prepare journal entries to record these transactions.
What will be an ideal response?
| Mar. 5 | Cash (250 * $102) ……………………. | 25,000 | ? |
| ? | Preferred Stock (250 * $100) …….. | ? | 25,000 |
| ? | Paid-in Capital in Excess of | ? | ? |
| ? | Par Value, Preferred Stock …….. | ? | 500 |
| Jul. 15 | Organization Expenses | 12,000 | ? |
| ? | Common Stock, No-Par………….… | ? | 12,000 |
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In CASE 6.1 Free Enterprise Fund v. Public Company Accounting Oversight Board (2010) before the U.S. Supreme Court, the plaintiffs brought various constitutional challenges involving the appointment and standards for removal of members of the Public Company Accounting Oversight Board. How did the Court rule and why?
a. That limitations on the removal of Board members contravened the Constitution's separation of powers and that the unconstitutional provisions were not severable from the remainder of the statute. b. That limitations on the removal of Board members contravened the Constitution's separation of powers but that the unconstitutional provisions were severable from the remainder of the statute. c. That limitations on the removal of Board members were constitutional. d. That limitations on the removal of Board members were constitutional only so long as the executive branch failed to challenge the restrictions placed on the president.
All of the following are acceptable methods to account for a majority-owned investment in subsidiary except:
A. Book value method. B. The initial value method. C. The fair-value method. D. The partial equity method. E. The equity method.
What was the objective of Congress in the enactment of Title VII?
Brainstorm about and briefly describe financial and non-financial factors that are relevant to the decision to accept the potential client.
What will be an ideal response?