ACC 110 Chapter Notes - Chapter 2: Intangible Asset, Current Liability, Retained Earnings

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1 Dec 2011

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Fiscal year: 12 month period which an entity provides information. Economic resources, for carrying out its business activities, that provides future benefits to. Controlled by the entity that will obtain the benefits (right to use the asset to make. Result of a transaction or event that has already occurred. Result of past transaction or economic event. Require some kind of economic sacrifice to settle. Entity"s obligations to pay money or provide goods, or service to suppliers, lenders, Obligations an entity has to pay debt or provide goods or services. The investment the owners of an entity have made in the entity. Shareholder"s equity: owner"s equity of a corporation. Partner"s equity: owner"s equity of a partnership. Common shares: reflects the amount of money that shareholders have contributed to. Retained earnings: sum of all the net incomes a corporation has earned. Dividends: payments, usually in cash by a corporation to its shareholder.

Related Questions

15 Economic resources that are controlled by the accounting entity as a result of past transactions and from which future benefits can be obtained are also known as? a. Revenues b. Liabilities C. Assets d. Equity e. None of the above The correct answer is 'c'.

16 Section 1000 of the CICA Handbook reference elements of the financial statements. Which of the following best describes an economic resource that is controlled by an entity as a result of a past transaction or event and from which future economic benefits may be derived? a. Asset b. Liability C. Owners Equity d. Expenses e. None of the above. The correct answer is 'a'.

Problem 18-15 (a) (LO. 4)

Quentin, Tara and Tito form a business entity with each contributing the following.

	Adjusted Basis	Fair Market Value
Quentin: Cash	$220,000	$220,000
Tara: Land	$55,000	90,000
Tito: Services		60,000

Their ownership percentages will be as follows.

Quentin	40%
Tara	40%
Tito	20%

Taraâs land has a $30,000 mortgage that is assumed by the entity. Tito is an attorney who receives her ownership interest in exchange for legal services. Determine the recognized gain to the owners, the basis for their ownership interests, and the entityâs basis for its assets if the entity is organized as:

If an amount is zero, enter "0".

a. Entity: Partnership.

Recognized Gain	Partners' Basis
Quentin	$	$
Tara	$	$
Tito	$	$

Asset	Partnership's Basis
Cash	$
Land	$
Organizational Costs	$

b. Entity: C corporation.

C corporation
	Recognized Gain	Shareholders' Basis
Quentin	$	$
Tara	$	$
Tito	$	$

Asset	C Corporation's Basis
Cash	$
Land	$
Organizational Costs	$

c. Entity: S corporation.

S corporation
	Recognized Gain	Shareholders' Basis
Quentin	$	$
Tara	$	$
Tito	$	$

Asset	S Corporation's Basis
Cash	$
Land	$
Organizational Costs	$

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ACC 110 Chapter Notes - Chapter 2: Intangible Asset, Current Liability, Retained Earnings

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