lOMoARcPSD|46240884
Last revised: April 2022
SOLUTIONS MANUAL
to accompany
Fundamental Accounting Principles
17th Canadian Edition
by Larson/Dieckmann/Harris
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 12-1
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised: April 2022
Prepared by:
John Harris, Seneca College
Technical checks by: Rhonda Heninger, SAIT
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 12-2
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised: April 2022
Chapter 12 Organization and Operation of Corporations
EXERCISES
Exercise 12-1 (15 minutes)
Characteristic Corporations
1. Owner authority and control........................................ e. One vote per share
2. Ease of formation........................................................
a. Requires government approval
3. Transferability of ownership....................................... d. Readily transferred
4. Ability to raise large capital amounts.......................... f. High ability
5. Duration of life............................................................
g. Unlimited
6. Owner liability.............................................................
h. Limited
7. Legal status..................................................................
c. Separate legal entity
8. Tax status of income....................................................
b. Corporate income is taxed
Exercise 12-3 (15 minutes)
2023
Jan. 15 Organization Expenses (or other various expenses)................. 31,700
Common Shares................................................................. 31,700
Issued common shares to promoters.
Feb. 21 Cash........................................................................................... 208,000
Common Shares................................................................. 208,000
Issued common shares for cash;
16,000 shares x $13/share = $208,000.
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 12-3
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised: April 2022
Mar. 9 Cash........................................................................................... 111,600
Preferred Shares................................................................. 111,600
Issued preferred shares for cash.
Aug. 15 Land.......................................................................................... 317,000
Building..................................................................................... 422,000
Equipment................................................................................. 114,000
Common Shares................................................................. 853,000
Issued common shares in exchange for land,
building, and equipment.
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 12-4
Downloaded by damaris mutuli ()
Last revised: April 2022
SOLUTIONS MANUAL
to accompany
Fundamental Accounting Principles
17th Canadian Edition
by Larson/Dieckmann/Harris
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 12-1
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised: April 2022
Prepared by:
John Harris, Seneca College
Technical checks by: Rhonda Heninger, SAIT
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 12-2
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised: April 2022
Chapter 12 Organization and Operation of Corporations
EXERCISES
Exercise 12-1 (15 minutes)
Characteristic Corporations
1. Owner authority and control........................................ e. One vote per share
2. Ease of formation........................................................
a. Requires government approval
3. Transferability of ownership....................................... d. Readily transferred
4. Ability to raise large capital amounts.......................... f. High ability
5. Duration of life............................................................
g. Unlimited
6. Owner liability.............................................................
h. Limited
7. Legal status..................................................................
c. Separate legal entity
8. Tax status of income....................................................
b. Corporate income is taxed
Exercise 12-3 (15 minutes)
2023
Jan. 15 Organization Expenses (or other various expenses)................. 31,700
Common Shares................................................................. 31,700
Issued common shares to promoters.
Feb. 21 Cash........................................................................................... 208,000
Common Shares................................................................. 208,000
Issued common shares for cash;
16,000 shares x $13/share = $208,000.
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 12-3
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised: April 2022
Mar. 9 Cash........................................................................................... 111,600
Preferred Shares................................................................. 111,600
Issued preferred shares for cash.
Aug. 15 Land.......................................................................................... 317,000
Building..................................................................................... 422,000
Equipment................................................................................. 114,000
Common Shares................................................................. 853,000
Issued common shares in exchange for land,
building, and equipment.
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 12-4
Downloaded by damaris mutuli ()
