Question

In: Accounting

July 1: York contributed $63,000 cash to the business in exchange for capital

July 1: York contributed $63,000 cash to the business in exchange for capital

Solutions

Expert Solution

Answer
On july 1 York Contributed $63,000 to business in exchange for capical.
This accounting Event act to increase both assets (cash) and equity
(Contributed Capital). The Increase in cash account is recorded as Debit
side increase and increase in equity(Contributed Capital) is recorded as
increase in credit side.
Effect of capital contribution on accounting equation
Assets        =        Liabilities      +        Equity
Cash          =         Equity Capital
$ 63,000 =       $ 63,000
As both side is balanced
Journal Entry
Cash A/c Dr. $ 63,000
       To Capital A/c $ 63,000
(Being Cash contributed by York in exchange of capital)
Please feel free to ask if anything about above solution in comment section of the question.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Dec.Dec. 1 CosmoCosmo contributed $ 20 comma 000$20,000 cash in exchange for capital. 2 Received $...
Dec.Dec. 1 CosmoCosmo contributed $ 20 comma 000$20,000 cash in exchange for capital. 2 Received $ 2 comma 600$2,600 cash from customers for services performed. 5 Paid $ 250$250 cash for office supplies. 9 Performed services for a customer and billed the customer for services​ rendered, $ 2 comma 500$2,500. 10 Received $ 700$700 invoice for utilities due in two weeks. 15 Paid for advertising in the local​ paper, $ 475$475. 20 Paid utility invoice received on Dec.Dec. 10. 25...
BUSINESS ANALYSIS select business that publicly trades on the New York Stock Exchange or NASDAQ 1....
BUSINESS ANALYSIS select business that publicly trades on the New York Stock Exchange or NASDAQ 1. the company`s name on its name history if the name changed since the company was originally formed ( consider mergers etc.) 2. company`s trademark(s) 3. location of the company`s home office and whether they have offices located outside the US (if so, identify location(s)) 4. description of the company`s general products or serviced 5. the company`s mission statement or business philosophy 6. whether the...
List of Transactions: June 1- Peck Farms contributed $100,000 to the business in exchange for common...
List of Transactions: June 1- Peck Farms contributed $100,000 to the business in exchange for common stock June 2- Paid monthly rent of $1,200 prepaid rent for the next three months $3,600 June 2- Paid utilities $500 June 2- Paid cash for 12month insurance policy starting on July 1st $8,000 June 3- Paid cash for land $15,000 June 3- Purchased office supplies on account $1,000 June 3- Paid for advertising $900 June 3- Purchased furniture on account $10,000 June 4-...
In 2001, Pagan contributed $150,000 cash to her corporation, Tax corporation in exchange for stock. The...
In 2001, Pagan contributed $150,000 cash to her corporation, Tax corporation in exchange for stock. The business never attained success the way Pagan would hope for. In 2011, Pagan sold her stocks to another party for $40,000. Pagan tax loss on her sale of stock is $110,000 ($40,000 - $150,000). The stock qualifies as section 1244 stock. Pagan files a return with her wife and can claim $100,000 ordinary loss and $10,000 as capital loss instead of $110,000 capital loss...
In 2001, Pagan contributed $150,000 cash to her corporation, Tax corporation in exchange for stock. The...
In 2001, Pagan contributed $150,000 cash to her corporation, Tax corporation in exchange for stock. The business never attained success the way Pagan would hope for. In 2011, Pagan sold her stocks to another party for $40,000. Pagan tax loss on her sale of stock is $110,000 ($40,000 - $150,000). The stock qualifies as section 1244 stock. Pagan files a return with her wife and can claim $100,000 ordinary loss and $10,000 as capital loss instead of $110,000 capital loss...
"Contributed Capital & Treasury Stock"   The Contributed Capital section of Shareholders Equity of the financial statement...
"Contributed Capital & Treasury Stock"   The Contributed Capital section of Shareholders Equity of the financial statement usually includes the capital stock and additional paid in capital. Discuss the FASB rationale for requiring additional disclosures regarding capital stock and additional paid in capital Accounting for Treasury Stock: What are treasury stocks? Why would a Corporation want to buy back its stock? Discuss the Cost Method and the Par Value Method for accounting for Treasury Stock.
IDENTIFY ?Advantages of debt financing ?Cash and cash equivalents ?Contributed capital ?Current liabilities ?Effects of money...
IDENTIFY ?Advantages of debt financing ?Cash and cash equivalents ?Contributed capital ?Current liabilities ?Effects of money market funds purchased with cash during the year ?Level of government that involves charters ?Types of taxes paid by employees ?Use of statement of cash flows
On July 1, 2020, Dynamic Company purchased for cash 40% of the outstanding capital stock of...
On July 1, 2020, Dynamic Company purchased for cash 40% of the outstanding capital stock of Cart Company. Both Dynamic and Cart have a December 31 year-end. Cart, whose common stock is actively traded in the over-the-counter market, reported its total net income for the year to Dynamic and also paid cash dividends on November 15, 2020, to Dynamic and its other stockholders. Required: a. How should Dynamic report the foregoing facts in its December 31, 2020, balance sheet and...
Question 1: The exchange rates in New York are: $1 = AUD 1.113 and $1 =...
Question 1: The exchange rates in New York are: $1 = AUD 1.113 and $1 = £0.658 A dealer is offering a quote: AUD 1 = £0.7617. What is the profit you can earn on $24,541 using triangle arbitrage? Question 2: You are given the following quotes: U.S. dollar/Brazilian Real = 0.3027 U.S. dollar/Australian Dollar = 0.7643 U.S dollar/Chinese Yuan = 0.1434 What is the Brazilian Real/Chinese Yuan cross rate?
On March 1, Eckert and Kelley formed a partnership. Eckert contributed $74,000 cash, and Kelley contributed...
On March 1, Eckert and Kelley formed a partnership. Eckert contributed $74,000 cash, and Kelley contributed land valued at $59,200 and a building valued at $89,200. The partnership also took Kelley’s $64,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $31,000, both get an annual interest allowance of 10% of their initial capital investment, and any remaining income or loss is shared equally. On...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT