Use the following information to answer the question below. When Calvert Corporation was formed on January 1, 2010, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation: 1 . The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000
bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency. 2 . The company issued 8,000 shares of stock at a price of $25 per share. 3 . The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $160,000. The entry to record transaction 3 would be:
a. Equipment 140,000
Common Stock 140,000
b. Common Stock 140,000
Equipment 140,000
c. Equipment 160,000
Common Stock 160,000
d. Equipment 160,000
Common Stock 140,000
Additional Paid-in Capital 20,000
D
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The following events apply to Bowman's Cleaning Service for Year 1.1). Issued stock for $44,000 cash2). On May 1, paid $27,000 for one year's rent in advance3). Purchased on account $4,500 of supplies to be used in the business4). Performed services of $68,400 and received cash5). At December 31, adjusted the records for the expired rent6). At December 31, an inventory of supplies showed that $660 of supplies were still unusedRequired: Show how each of these transactions affects the company's accounts. Calculate the year-end total for each account.
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Which of the following is true of an LLC?
A. An LLC is a creature of federal law. B. An LLC is regarded as a separate legal entity. C. An LLC cannot hold title to property. D. The owners of an LLC are called general partners or specific partners.
The U.S. Constitution created these branches of federal government:
a. executive, senatorial and administrative b. executive, legislative and state c. executive, legislative and senatorial d. legislative, judicial and constitutional e. none of the other choices are correct
Which of the following statements is CORRECT?
A. If a project has "normal" cash flows, then its MIRR must be positive. B. If a project has "normal" cash flows, then it will have exactly two real IRRs. C. The definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life. D. If a project has "normal" cash flows, then it can have only one real IRR, whereas a project with "nonnormal" cash flows might have more than one real IRR. E. If a project has "normal" cash flows, then its IRR must be positive.