Required information Business Sim Corp. (BSC) issued 2,000 common shares to Kelly in exchange for $29,000....

Required information Business Sim Corp. (BSC) issued 2,000 common shares to Kelly in exchange for $29,000. BSC borrowed $50,000 from the bank, promising to repay it in two years. BSC purchased computer equipment for $63,000, signing a six-month note for $8,000, and paying the balance with check number 101. BSC received $1,450 of supplies purchased on account. BSC’s loan contains a clause (“covenant”) that requires BSC to maintain a ratio of current assets to current liabilities of at least 2.6.

Identify the transactions and analyze their accounting equation effects. (Enter any decreases to account balances with a minus sign.)
Basically Make a Balanced sheet. Thanks!

Assets	Liabilities	Stockholders Equity

Expert Solution

ekkarill92 answered 1 year ago

Evergreen Building, Inc. issued 2,000 shares of $14 par common stock in exchange for a truck...

Evergreen Building, Inc. issued 2,000 shares of $14 par common stock in exchange for a truck with a current market value of $45,000. Which of the following is not part of the journal entry for this transaction? A. Crediting Common Stock for $28,000 B. Crediting Common Stock for $45,000 C. Crediting Paid-In Capital in excess of par-common for $17,000 D. Debiting Equipment for $45,000 In the indirect method of Cash Flows, which of the following would be added to net...

At January 1, Strunk Corp. had 1,200,000 common shares outstanding. Strunk issued 240,000 additional common shares...

At January 1, Strunk Corp. had 1,200,000 common shares outstanding. Strunk issued 240,000 additional common shares on March 1 and 180,000 more on June 1. On November 1, Strunk repurchased 60,000 common shares as treasury stock. For purposes of basic earnings per share, the weighted average shares outstanding for the year is 1,090,000 shares 1,190,000 shares 1,380,000 shares 1,560,000 shares None of the above 2. Davies Inc. had 1,400,000 outstanding shares of common stock at the beginning of the current...

Todd Inc. issued 2,000 shares of $15 par value common stock at $18 per share for...

Todd Inc. issued 2,000 shares of $15 par value common stock at $18 per share for cash. A) What Account/s and Amounts would you DEBIT, B) What Account/s and Amounts would you CREDIT. You must answer A) and B) correctly to receive full credit for this question.

Feb. 21: Issued 50,000 shares of common stock in exchange for equipment. The list price of...

Feb. 21: Issued 50,000 shares of common stock in exchange for equipment. The list price of the equipment was $950,000, and the stock market price was $18 per share. May 10: Declared and distributed a 5-for-4 stock split, effected in the form of a 25% stock dividend. The market value of the $1 par common stock was $20 per share. Aug. 15: Declared a $2.50 per share dividend to common shareholders of record on August 31, payable on September 5....

Common shares are issued in exchange for a noncash asset. Under IFRS, the noncash asset should...

Common shares are issued in exchange for a noncash asset. Under IFRS, the noncash asset should be recorded at: The average cost of the common shares in the common shares account The fair market value of the shares The fair market value of the asset acquired The fair market value of the asset acquired or the fair market value of the common shares if the fair market value of the asset cannot be reliably determined What is the...

4. Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it...

4. Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it will resell. The merchandise had originally cost the other party $250,000 and had a fair value of $300,000 on the date of the exchange. The retail value of the inventory is $520,000. Toussaint Company is not publicly traded and cannot precisely determine the fair value of its stock. It has used some industry averages, however, and applied Black-Scholes-Merton and estimates the fair value of...

Promising Corp starts the year with 25,000 shares of $1 par common stock issued at an...

Promising Corp starts the year with 25,000 shares of $1 par common stock issued at an average cost of $24 each. Record each of the following sequential entries.1.) Repurchase 2,000 shares for $18 each; 2.) Sell 1,000 of the shares in #1 for $26 each; 3.) Sell 800 shares of the stock repurchased in #1 for $9 each; 4.) Retire the remaining 200 shares repurchased in #1. After the 4th entry, how many shares are issued? Outstanding?

Cheyenne Corp. issued 1,800 shares of common stock. Prepare the entry for the issuance under the...

Cheyenne Corp. issued 1,800 shares of common stock. Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) The stock had a par value of $8.25 per share and was issued for a total of $46,000. (b) The stock...

On January 1, 2016, A Corp. issued shares of its common stock to acquire all of...

On January 1, 2016, A Corp. issued shares of its common stock to acquire all of the outstanding common stock of B Inc. B’s book value was only $140,000 at the time, but A issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. A was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on B's records by $60,000 while equipment (five-year life) was undervalued...

1. Bonita Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000...

1. Bonita Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares of $50 par value preferred stock. The preferred stock was originally issued at $65 per share. The common stock is trading at $24 per share at the time of conversion. Record the conversion of the preferred stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles...

Question