A cash receipts journal is provided in the Working Papers. The source document is abbreviated as follows: receipt, R.

Transaction:

July 2. John Abrams purchased 4,000 shares of GDT Tractors common stock for $6.00 per share. R553.

Instructions:

Journalize the transaction using each of the following assumptions regarding the common stock:

A.$0.10 par-value common stock.

B. No-par-value common stock.

C. $0.10 stated-value common stock.

The discovery of alternative fuels has led most oil companies to become involved in the search for natural gas in shale located throughout the United States. As a geological engineer for ExxonMobil Corporation, Trent Hendrix has been working to develop estimates of the amount of natural gas reserves in a recent discovery in the Marcellus Shale. Trent's findings are nothing short of spectacular. His data indicate the reserves are four times any previously published estimates. This discovery could increase ExxonMobil's earnings by as much as 3% a year for the next ten years.

Trent purchases $400.00 of ExxonMobil stock every month through a payroll deduction program. He is considering using a large portion of his savings to buy additional shares. Since you are the ethics officer of the company, he has asked your opinion on his proposed stock purchase.

INSTRUCTIONS

Access the Standards of Business Conduct of ExxonMobil Corporation. Using this code of conduct as a guide, provide Trent with guidance on his proposed stock purchase. Can Trent continue his monthly purchases?

Using the internet or the "Help Wanted" section of a local newspaper, find a job opening in the communications/ public relations area. List the education and work experience requirements for the position.

Driving down a busy city street you notice a new location of your favorite fast food chain ready to open its doors. The building is complete, the parking lot is nearly paved, and food trucks are arriving to stock the kitchen. Have you ever wondered where the business obtained the money needed to open the store?

A well-established business typically can fund expansions using retained earnings. Bank loans can be arranged if a little extra financing is required. However, small businesses without a proven track record of earnings may find it difficult to qualify for a bank loan. For these businesses, an investment from a venture capital firm may be an option. A venture capital firm seeks to invest in small businesses with high growth potential and provides management expertise as well as needed financial capital. Another method of funding business expansion is issuing stock to the public. This option is especially viable if the current stockholders lack funds to invest in the corporation. To protect the investing public, the corporation is required to register the stock with the Securities and Exchange Commission. The registration document includes a profile the corporation, audited financial statements, risk factors, and the intended use of the funds generated by the stock sale.

In 2018, ARMO BioSciences, Inc., (ARMO) issued stock for public purchase on a national stock exchange. ARMO develops prescription drugs designed to activate a patient's natural immune system to fight cancer. Prior to 2018, ARMO's stock had not been traded on a public market. According to the registration document, ARMO expected to generate as much as $103.3 million from the stock sale. The corporation intends to use a majority of the funds for the development and clinical trials of drugs. The remaining funds are to be used for additional personnel, capital expenditures, and other operating costs.

CRITICAL THINKING

1. Research a business classified as a venture capital firm. Summarize the mission of the firm. Discuss the role of a venture capital firm in the economy.

What are three steps necessary to receive a charter?

Tullos Technologies is authorized to issue 100,000 shares of $1.00 par-value common stock and 80,000 shares of 5%,$100.00 par-value preferred stock. The preferred stock has a conversion option that allows one share to be exchanged for five shares of common stock.

Instructions:

Journalize the following transactions. A general journal and a cash receipts journal are provided in the Working Papers. Source documents are abbreviated as follows: memorandum, M; receipt, R.

A major in communications can lead to a variety - of career fields such as broadcasting, joumalism, government, public relations, arbitration, grant writing, and education.

Many public relations (PR) positions require more than good communication skills. For example, a PR director for a company that makes pacemakers may be the one to announce a research breakthrough or to explain why the company's income statement is being restated. He or she should have some knowledge of medicine and an understanding of how revenues and expenses are measured.

CRITICAL THINKING Using the Internet or the "Help Wanted" section of a local newspaper, find a job opening in the communications/public relations area. List the education and work experience requirements for the position.

Use Home Depot's Consolidated Balance Sheets and Consolidated Statements of Stockholders' Equity in Appendix B to answer the questions below.

What is the par value of Home Depot's common stock?

To finance rapid expansion, how can a corporation acquire additional capital?

Using the following information, calculate the number of shares bought and the average cost per share. The monthly investment is $150.00. Round to two decimal places.

$$\begin{array}{lccc} \text{Date of Investment} & \text{Investment Amount} & \text{Cost per Share} & \text{Shares Bought*} \\ \hline \text{January} & \$ 150.00 & \$ 12 & \\ \text{February} & 150.00 & 10 & \\ \text{March} & 150.00 & 8 & \\ \text{April} & 150.00 & 13 &\\ \text{TOTAL}\\ \end{array}$$

$^*$Calculated by dividing investment by number of shares bought.

Use the Internet with a partner and research the performance of the Dow over the last 100 years. Create a timeline depicting historical events that influenced gains or losses in the market.

Page 6 of a cash receipts journal is provided in the Working Papers. The source document is abbreviated as follows: receipt, R. Your instructor will guide you through the following examples.

Transaction:
June 5. Harold Davis purchased 6,000 shares of GlassTown, Inc., common stock for $8.00 per share. R242.

Journalize the transaction using each of the following assumptions regarding the common stock:

a.$1.00 par-value common stock.
b. No-par-value common stock.
c. $1.00 stated-value common stock.

A debit is used to record an increase in all of the following accounts except:

A. Dividends
B. Cash
C. Supplies
D. Accounts Payable
E. Prepaid Insurance

After operating as a partnership for several years, Temika Clark and Terry Friesen decided to incorporate their business, Modern Landscapes. The new corporation received its charter on March 31 of the current year. The corporation is authorized to issue 150,000 shares of $1.00 stated-value common stock and 50,000 shares of 8%,$100.00 par-value preferred stock.

Instructions:

Journalize the following transactions. A general journal and a cash receipts journal are provided in the Working Papers. Source documents are abbreviated as follows: memorandum, M; receipt, R.