The Following Information Should Be Used for Questions

question 71

Short Answer

The following information should be used for questions
Cash
Accounts Receivable
Office Equipment
Office Supplies
Accounts Payable
Brandon Phipps, Capital
Brandon Phipps, Drawing
Fees Income
Rent Expense
Salaries Expense
Utilities Expense

For each of the following transactions determine the accounts to be debited and credited.
-Received a credit for damaged office equipment that was returned

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Definitions:

Preemptive Rights

Rights that give existing shareholders the option to buy additional shares before the company offers them to the public, to maintain their proportionate ownership.

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Treasury Shares

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the financial market but not considered when calculating earnings per share or dividends.

MBCA

Stands for the Model Business Corporation Act, which is a template law designed to standardize and regulate the formation and operation of corporations across the United States.