| ASSETS | ||
| Cash | $960.00 | |
| Accounts Receivable | 1,570.00 | |
| Merchandise | 720.00 | |
| ————— | ||
| Total | $3,250.00 | |
| LIABILITIES | ||
| Accounts Payable | 460.00 | |
| Bills Payable | 500.00 | |
| Hoadley | 1,145.00 | |
| Stockton | 1,145.00 | |
| ————— | ||
| Total | 3,250.00 | |
Make all necessary entries on the books of the partnership.
Make open entries on the books of the new company.
24. The National Manufacturing Co. has an authorized capital of $100,000.00 of which $60,000.00 is paid up and $40,000.00, unsubscribed. It is decided to permit employes to subscribe for $10,000.00 of the stock by paying 10 per cent in cash, all dividends declared to be applied to the payment of subscriptions.
What entries are made when this stock is subscribed for?
A 10 per cent dividend being declared at the end of the first year, what entry is required?
25. The Atlas Novelty Co. has a capital stock of $50,000.00. All of the stock has been subscribed for, but only 40 per cent has been paid. A surplus of $10,000.00 has been accumulated. It is desired to reduce the stock to $25,000.00 full paid. What is the necessary proceeding, and what entries are required?
26. A company has a capital stock of $50,000.00 full paid, and a surplus of $11,172.00. A stockholder who owns $7,000.00 stock in the company wishes to dispose of his stock and, to secure cash, offers to sell it to the company at par. His offer is accepted and the stock purchased, but the company does not wish to reduce its capitalization. What is the entry?
27. What is a reserve? Give three examples showing purposes for which reserves are created.