Mark Peavy created Peavy’s Cleaning Service Corporation and hired a lawyer to perform the incorporation for a fee of $500. The par value of the common stock will be $1 per share and 50,000 shares are authorized in the charter of incorporation. Mark purchased 20,000 shares of the corporation’s common stock for $20,000 using his personal funds. The corporation will operate an office cleaning service business in Pike Road, Alabama. The business will prepare financial statements on a monthly basis and calculate depreciation/amortization at June 30 and December 31, respectively, using the straight-line method. Any fixed assets purchased during the month are treated as if purchased at beginning of month. Interest is accrued at year-end and when paid. Mark paid the lawyer the incorporation fe
Mark Peavy created Peavy’s Cleaning Service Corporation and hired a lawyer to perform the incorporation for a fee of $500. The par value of the common stock will be $1 per share and 50,000 shares are authorized in the charter of incorporation. Mark purchased 20,000 shares of the corporation’s common stock for $20,000 using his personal funds. The corporation will operate an office cleaning service business in Pike Road, Alabama. The business will prepare financial statements on a monthly basis and calculate depreciation/amortization at June 30 and December 31, respectively, using the straight-line method. Any fixed assets purchased during the month are treated as if purchased at beginning of month. Interest is accrued at year-end and when paid. Mark paid the lawyer the incorporation fe
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 46P
Related questions
Question
Mark Peavy created Peavy’s Cleaning Service Corporation and hired a lawyer to perform the
incorporation for a fee of $500. The par value of the common stock will be $1 per share and
50,000 shares are authorized in the charter of incorporation. Mark purchased 20,000 shares of
the corporation’s common stock for $20,000 using his personal funds. The corporation will
operate an office cleaning service business in Pike Road, Alabama. The business will prepare
financial statements on a monthly basis and calculate depreciation/amortization at June 30
and December 31, respectively, using the straight-line method. Any fixed assets purchased
during the month are treated as if purchased at beginning of month. Interest is accrued at
year-end and when paid. Mark paid the lawyer the incorporation fe
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT