CONTENTS. PAGES. Journalizing. Principles of journalizing. Entries for Notes, Sight and Time Drafts. Single Entry Changed to Double Entry. One Loss or Gain by Single Entry. Closing the Single Entry Ledger. Using Partnership Law. Legal view of a firm. Mercantile view of a firm. Partnership Articles. Partnership Definitions, and complex Partnership adjustments under all the Minute book. Subscription book. Installment book. Installment Scrip book. Certificate of Stock book. Transfer book. Dividend Receipt book A Private Firm Converted Into a Corporation. Entries are given to close the books of the old firm, and to open the books of the corporation, where the Liabilities exceed the Assets. This gives rise to fictitious accounts necessary to get the approved assets and liabilities on the A Mercantile Firm Changed to a Stock Company. The incorporators subscribe for stock in proportion to their interest in the A Commercial Business 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 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 A Manufacturing Company is Incorporated. Twenty per cent. of the subscription to be paid in cash, and 20 per cent. in A Mining Machine Company is Incorporated. The Patentee sells his patent right to the company and takes stock in pay- A Lumber Firm is Changed to a Corporation. The members of the old firm take stock at par, for their property. Other Stock is subscribed. Two hundred shares are donated to each incorporator for extra service rendered, they to pay 10 per cent. of the nominal par value of the shares thus donated. They then donate to the company 100 shares each, to be sold for Operating Capital. Complete entries are given for the above, also for stock sold at par, at a 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. A Retail Grocery Company is Incorporated. The incorporators pay $10 per share for their stock (par $100). Shares are reserved to be sold for Working Capital. Real Estate is bought and paid for partly in cash and partly in stock. Money is borrowed to pay dividends. Dividends are paid in Stock, which has been held for Working Capital. A Limited Manufacturing Company is Incorporated. The incorporators pay their subscriptions in cash, merchandise, real estate A Printing and Publishing Firm Changed to a Corporation. 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- A Limited Wholesale Grocery Company Incorporated from a The proprietor of the old firm pays for his stock out of the assets of his old 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 An assessment is called to cover losses and to produce a Working Capital. A Manufacturing Company Incorporated. A Patent right is bought with stock. Capital Stock Reduced. Entries are A Manufacturing Company Incorporated. Capital Stock $80,000. There are eight stockholders, each to hold $10,000 Stock Forfeited for Non-Payment. Stock Forfeited. Stock and Installments Forfeited. These entries depend Formation of a Trust, or the consolidation of six large rubber companies. The new company purchases all the property, machinery, material, etc., at an appraised value, and issues in payment full paid stock of the consolidated company. The liabilities and accounts due the old companies are to be liquidated by themselves. Common Stock is issued for the assets taken by Complete entries are given for this operation. |