Monthly Archives: November 2012

Spinone Corporation directs its sole shareholder to exchange all of his common stock valued at $200,000 (basis of $50,000) for $100,000 of common stock, $80,000 of preferred stock, and $20,000 in cash

Spinone Corporation directs its sole shareholder to exchange all of his common stock valued at $200,000 (basis of $50,000) for $100,000 of common stock, $80,000 of preferred stock, and $20,000 in cash. In addition, Spinone directs its sole bondholder to … Continue reading

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Through a “Type B” reorganization, Golden Corporation acquired 90% of RetrieverCo stock by October 2 of the current tax year ending December 31

Through a “Type B” reorganization, Golden Corporation acquired 90% of RetrieverCo stock by October 2 of the current tax year ending December 31. At the time the 90% was acquired, RetrieverCo was worth $800,000 and the Federal long-term tax-exempt rate … Continue reading

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Through a “Type A” reorganization, VizslaCo acquires 100% of Puli Corporation by exchanging 30% of its stock for all of Puli’s assets and liabilities

Through a “Type A” reorganization, VizslaCo acquires 100% of Puli Corporation by exchanging 30% of its stock for all of Puli’s assets and liabilities. The VizslaCo. stock was exchanged for all of the Puli shareholders. Then Puli liquidated. The net … Continue reading

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PE-2 In January 2012, the management of Sarah Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities

PE-2 In January 2012, the management of Sarah Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 1,200 shares of NJF common … Continue reading

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P13-2B The comparative statements of Jetson Company are shown below

P13-2B The comparative statements of Jetson Company are shown below. JETSON COMPANY Income Statements For the Years Ended December 31 2012 2011 Net sales $780,000 $624,000 Cost of goods sold 440,000 405,600 Gross profit 340,000 218,400 Selling and administrative expense … Continue reading

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P2-6B Condensed balance sheet and income statement data for Fellenz Corporation are presented below

P2-6B Condensed balance sheet and income statement data for Fellenz Corporation are presented below. FELLENZ CORPORATION Balance Sheets December 31 Assets 2012 2011 Cash $ 40,000 $ 24,000 Receivables (net) 90,000 55,000 Other current assets 74,000 73,000 Long-term investments 78,000 … Continue reading

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P4-2B Pamela Quinn started her own consulting firm, Quinn Consulting, on May 1, 2012

P4-2B Pamela Quinn started her own consulting firm, Quinn Consulting, on May 1, 2012. The trial balance at May 31 is as shown below. Quinn CONSULTING Trial Balance May 31, 2012 Debit Credit Cash$ 7,500 Accounts Receivable 3,000 Prepaid Insurance … Continue reading

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P3-5B Troy Ridgell incorporated Ridgell Consulting, an accounting practice, on May 1, 2012

P3-5B Troy Ridgell incorporated Ridgell Consulting, an accounting practice, on May 1, 2012. During the first month of operations, these events and transactions occurred. May 1 Stockholders invested $40,000 cash in exchange for common stock of the corporation. 2 Hired … Continue reading

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P1-3B Special Delivery was started on May 1 with an investment of $45,000 cash

P1-3B Special Delivery was started on May 1 with an investment of $45,000 cash. Following are the assets and liabilities of the company on May 31, 2012, and the revenues and expenses for the month of May, its first month … Continue reading

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On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700

On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred. 1. Paid $2,900 cash … Continue reading

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