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Explain the basis for your answer.




Scott Company was organized on January 1, 2007, by 3 friends. Each organizer invested $50,000 in the company and, in turn, was issued 10,000 shares of stock.;To date, they are the only stockholders. During the first month (January 2007), the company had the following five events;1. Collected a total of $150,000 from the organizers and, in turn, issued the shares of stock.;2. Purchased a building for $55,000, equipment for $20,000, and three acres of land for $21,000, paid $15,000 in cash and signed a note for the balance, which is due to be paid in 15 years.;3. One stockholder reported to the company that 1,000 shares of her Scott's stock had been sold and transferred to another stockholder for $5,000 cash.;4. Purchased supplies for $2,000 on account with Net 30 Day terms.;5. Sold one acre of land for $7,000 to a third party, issuing a 9-month note on the sale.;1. Was Scott Company organized as a partnership or corporation? Explain the basis for your answer.;2. To develop a quick assessment of the economic effects of these transactions on Scott Company, you have decided to complete the spreadsheet that follows;and to use proper debits and credits for each account. Reflect debits as a positive number and credits as a negative number.;The first transaction is used as an example.;Assets Liabilities Stockholder's Equity;Cash Supplies Notes Receivable Land Building Equipment Notes Payable Contributed Capital Retained Earnings;150,000.00 (150,000.00)


Paper#27194 | Written in 18-Jul-2015

Price : $39