ems 37-40 A-True B-False n stock is an asset account. 37 38 shareholders. Commo
ID: 2436812 • Letter: E
Question
ems 37-40 A-True B-False n stock is an asset account. 37 38 shareholders. Commo A disadvantage of incorporating is unlimited liability to hree ga much casier to form a partnerahip than a sla troprer $75,000-60 day 6% note will pay interest at maturity? propreitorship guestions 41- 45. - Classify the following accounts Asset b. Current Liability c. Long term Liability d. Stockholders- Equity e. Not a balance sheet account 41. Common Stock Cash Dividends Payable Paid in Capital, Treasury Stock Bonds Payable Gain on Sale of Equipment 43. 45 46. Net receivables is the total account receivables less th allowance for uncollectible accounts. (A- True B- False 47. Premium on is a. added to bonds payable b, subtracted from bonds payable bonds is_to get the book value of the bond . neither added or subtracted d added to interest payableExplanation / Answer
37) Common Stock is a Stockholders’ Equity Account and it is a liability account because at the time of winding up, the company is liable to pay the contributed capital of the shareholders. Hence the statement is B-False.
38) The statement is B-False.
The shareholders liability is limited to the contributed capital by the shareholders in the company.
39) The Statement is B-False.
Sole Propreitorship is much easier than forming a partnership firm. One person is needed to open a Sole Proprietor ship
40)
Interest on maturity = $75,000*Rate of Interest 6% x 60 days / 365 Days in a year assuming
= $740
In case 360 days in a year
Interest on maturity = $75,000*Rate of Interest 6% x 60 days / 360 Days in a year assuming
= $750
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