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Chapter 9...

69- 72

A Mercantile Firm Changed to a Stock Company.

The incorporators subscribe for stock in proportion to their interest in the
old firm. Entries are given to place the assets of the old firm upon the
books of the Company. Stock is held in the Treasury. Treasury stock is

sold, etc., etc.

A Commercial Businoss is Incorporated Into a Joint Stock

Company Having No Liabilities.

The incorporators divide the majority of stock among themselves Entries

are given to create a Working Capital and Reserve Fund. A dividend is
declared and paid out of the Reserve Fund, etc.

Chapter 10.......

72- 77

Partnership Books Changed to Joint Stock Company.

The members of the old firm take stock at par, for their net interest in the

partnership, the other subscribers to pay their subscriptions in quarterly

installments. Entries are given if the old books are to be used. Entries

are also given if a set of new books is to be opened. A stock dividend is

declared, etc.

A Manufacturing Company is Incorporated.

Twenty per cent of the subscription to be paid in cash, and 20 per cent. in
installments every 60 days thereafter, until paid up. A Surplus is created.
An Installment Dividend is declared. To whom dividends are payable, etc.

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An Oil Company is Incorporated.

The owner of an oil well incorporates a company and takes full paid stock


for his full right and title in the land. Other subscribers pay 25 per cent.
cash down, and the balance in installments every 60 days.



A Limited Manufacturing Company is incorporated.

The incorporators pay their subscriptions in cash, merchandise, real estate
and notes. A Dividend is declared. A Reserve Fund created. Dividend on
Treasury Stock, etc.


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A Printing and Publishing Firm Changed to a Corporation.

The members of the old firm pay their subscription with the property of the
partnership. A Stock Dividend is declared.


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A Mining Company is Incorporated.

Capital Stock all subscribed and paid in cash. Mines and plants bought for
cash. Capital Stock reduced under various conditions, Common Stock
changed to Preferred Stock. Preferred Stock issued. Dividends declared
on Preferred Stock and Common Stock. Stock Watered. Entries to in,
filate values, etc., etc.

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A Limited Wholesale Grocery Company Incorporated from a

Private Firm.
The proprietor of the old firm pays for his stock out of the assets of his old
business. The corporation collects the accounts and pays the liabilities of
the old firm. Entries are given to close the old firm's books and to open

new ones for the corporation.

A Limited Manufacturing Company Incorporated.

Single Entry Stock Books Changed to Double Entry.

Showing the operation to determine the net gain by Single Entry. A stock

dividend is declared involving one of the most puzzling stock entries apt

to arise.

A General Store Is Incorporated.

Par value of shares $100. Incorporators pay $10 per share and receive full

paid stock.

Chapter 15.....


Street Railway Consolidation.

The stock of both companies to be redeemed at par, and new stock issued in

its stead. The assets and liabilities of both companies to be assumed by the

new corporation. Two entries are given to consolidate. Bonds are sold at
par, premium aud discount.

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