In order to be recognized in the financial statement, a business event or transaction should influence the elements of accounting equation. For example, paying cash for an expense incurred effects the asset (cash) and stockholders’ equity ( retained earnings ). Describe each transaction listed.

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Answer 1

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Chapter 2, Problem 45E

To determine

Introduction:

In order to be recognized in the financial statement, a business event or transaction should influence the elements of accounting equation. For example, paying cash for an expense incurred effects the asset (cash) and stockholders’ equity (retained earnings).

Describe each transaction listed.

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Joe transferred the following assets to JH Corporation. Basis to Transferor FMV Cash $120,000 $120,000 Machinery $48,000 $36,000 Land $108,000 $144,000 In exchange, Joe received 50% of JH Corporation’s only class of stock outstanding. The stock has no established value. However, all parties believe that the value of the stock Joe received is the equivalent of the value of the assets she transferred. The only other shareholder, Ethan, formed JH Corporation five years ago. Joe has no gain or loss on the transfer. JH Corporation has a basis of $48,000 in the machinery and $108,000 in the land. JH Corporation has a basis of $36,000 in the machinery and $144,000 in the land. Joe has a basis of $276,000 in the stock of JH Corporation.e. None of the above.

I need guidance with this general accounting problem using the right accounting principles.

Can you explain this general accounting question using accurate calculation methods?

Answer 2

Question

Chapter 2, Problem 45E

To determine

Introduction:

In order to be recognized in the financial statement, a business event or transaction should influence the elements of accounting equation. For example, paying cash for an expense incurred effects the asset (cash) and stockholders’ equity (retained earnings).

Describe each transaction listed.

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Answer 3

Question

Chapter 2, Problem 45E

To determine

Introduction:

In order to be recognized in the financial statement, a business event or transaction should influence the elements of accounting equation. For example, paying cash for an expense incurred effects the asset (cash) and stockholders’ equity (retained earnings).

Describe each transaction listed.

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Answer 4

Question

Chapter 2, Problem 45E

To determine

Introduction:

In order to be recognized in the financial statement, a business event or transaction should influence the elements of accounting equation. For example, paying cash for an expense incurred effects the asset (cash) and stockholders’ equity (retained earnings).

Describe each transaction listed.

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Answer 5

Chapter 2, Problem 45E

To determine

Introduction:

In order to be recognized in the financial statement, a business event or transaction should influence the elements of accounting equation. For example, paying cash for an expense incurred effects the asset (cash) and stockholders’ equity (retained earnings).

Describe each transaction listed.

Answer 6

Chapter 2, Problem 45E

To determine

Introduction:

In order to be recognized in the financial statement, a business event or transaction should influence the elements of accounting equation. For example, paying cash for an expense incurred effects the asset (cash) and stockholders’ equity (retained earnings).

Describe each transaction listed.

Answer 7

Chapter 2, Problem 45E

To determine

Introduction:

In order to be recognized in the financial statement, a business event or transaction should influence the elements of accounting equation. For example, paying cash for an expense incurred effects the asset (cash) and stockholders’ equity (retained earnings).

Describe each transaction listed.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 2 - What is the conceptual framework of accounting?Ch. 2 - Prob. 2DQ Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Describe the constraint on providing useful...Ch. 2 - Prob. 6DQ Ch. 2 - Prob. 7DQ Ch. 2 - Prob. 8DQ Ch. 2 - Of all the events that occur each day, how would...Ch. 2 - Prob. 10DQ

In order to be recognized in the financial statement, a business event or transaction should influence the elements of accounting equation. For example, paying cash for an expense incurred effects the asset (cash) and stockholders’ equity ( retained earnings ). Describe each transaction listed.

Solution Summary: The author explains that a business event or transaction should influence the elements of accounting equation.

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Chapter 2 Solutions