(e) A payment of 20% is called for on the above stock.
13. A corporation is organized with a capitalization of $50,000.00 to take over the business of Henry Thompson. He is to pay his liabilities out of his assets, and transfer the balance of the property belonging to the business to the corporation, receiving $25,000.00 full paid stock. The following discloses the condition of his affairs:
| ASSETS | ||
| Cash in Bank | $1164.50 | |
| Accounts Receivable | 3760.00 | |
| Real Estate | 10000.00 | |
| Merchandise Inventory | 7642.50 | |
| Furniture and Fixtures | 600.00 | $23167.00 |
| ———— | ||
| LIABILITIES | ||
| Bills Payable | 1000.00 | 1000.00 |
| ———— | ———— | |
| Balance | $22167.00 | |
What is the proper entry on the books of the corporation, the balance of the stock being unsubscribed?
14. A corporation agrees to purchase a mine, issuing $1,000,000.00 full paid stock in payment. The owner of the mine, to whom the stock is issued, agrees to donate to the company $500,000.00 of his stock to provide working capital. Subsequently, $100,000.00 of this stock is sold at 50% of its face value; $200,000.00 at 60%; $100,000.00 at 70%; and $100,000.00 at par. Working capital is maintained at the amount realized from the sale of the donated stock. Make all entries to show these transactions, it being understood that all subscriptions are paid in cash.
15. If the stock of a corporation sells at a premium, how would you enter the amount received above par? To what account would you transfer the premium when closing the books?
16. What would be the entries in the stock books to record the transactions shown in questions 12 and 14?
17. A promoter organizes a corporation to develope a mine, receiving as his fee $50,000.00 in stock. What are the entries on the books of the corporation?
18. The profits of a corporation with a paid up capital of $200,000.00, are $18,750.00. The directors declare a cash dividend of 6%, and create a special surplus fund of $5,000.00. Make all necessary entries.
19. The losses of the above corporation during the following year were $2,750.00. Make proper entries, with full explanations.