My first name initial is U Ben and Eric are opening a comic bookstore to be registered as E&B Comic Bookstore Co. There is no other competingcomic bookstore in the area. Their fundamental decision is how to organize the business and they anticipate a substantialprofit in the first year, with the ability to sell franchises in the future. Although they have enough to start the business nowas a partnership, cash flow will be an issue as they grow. They feel the corporate form of operation will be best for thelong term. They seek your advice.Requirements1. What is the main advantage they gain by selecting a corporate form of business now?2. Distinguish between par value and issue price.3. If they decide to issue $1 par common stock and anticipate an initial market price of $80 per share, how many shareswill they need to issue to raise $4,000,000?4. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding theirdecision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B ComicBookstore Company's charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below),5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company'sjournal entries and statement of owner's equity based on the following information which is grouped according to your firstname initial. (Hint!!!! Example first Manuel will use the initial M and that person should only use the info presentedin line with the heading with their first name initial. You are not allowed to use info associated other initials otherthan that of your own as this will result in the forfeiture of the grade.) A. Issued_shares of class A common stock. Stock has par value of _-per share and was issued at $_pershare. (Please refer to table below and use only the info in line with your first name initial in the blank/underlinedspace).firstname Initial # of shares issuedA, P, I, E, VC, O, R, YК, а, М, FS, W, G, ZD, T, L, UN, B, J, X, HPar value30% of authorised shares $|20% of authorised shares $40% of authorised shares $Issue Price$28.00$40.00$62.0020.0030.0045.0045.0050% of authorised shares2$$75.0060% of authorised shares$$105.00$125.0048.00| 80% of authorised shares $60.00B. Issuedshares of no-par class B stock (Please refer to table below and use only the info in line with yourfirst name initial in the blank/underlined space).firstname Initial # of shares issuedA, P, I, E, VC, O, R, YK, Q, M, FS, W, G, ZD, T, L, UN, B, J, X, HIssue Price25.0038.0060.0070.0098.00118.00|30% of authorised shares2$20% of authorised shares2$40% of authorised shares$450% of authorised shares2$60% of authorised shares$4| 80% of authorised shares%24

Corporation refers to a legal form of identity of a business that is separate from its members or…

Answered: d as E&B Comic Bo ow to organize the…

Business

Accounting

d as E&B Comic Bo ow to organize the future. Although the ev feel the corpora

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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