Self Employed Mortgages Housemortgagemortgagecorp Loan Szh Directory Companies P House Mortgage Mortgage Corp 请教。 Journal entry for newly incorporated, with negative - 未名空间(mitbbs.com)

发信人: laoqintow (lqt), 信区: Accounting
标  题: 请教。 Journal entry for newly incorporated, with negative net asset
发信站: BBS 未名空间站 (Thu Feb  9 14:08:21 2012, 美东)

Hi,

Here is a question that I don't know how to make the very first journal
entry for a newly incorporated corporation (C-corp).

A person contributes a house to incorporate a new company X. Info about the
house:
TaxBasis  = 100
FairValue = 150
Mortgage  = 180.

What is the proper accounting journal entry for the new company X?


I am puzzled how to deal with the negative asset. I guess if the mortgage
were 80, then this would be enough:
Dr. House  150
Cr.    Mortgage Payable 80
Cr.    Equity           70

But here the mortgage is 180, what to do? using goodwill, like?
Dr. House   150
Dr. Goodwill 30
Cr.    Mortgage Payable 180
Cr.    Equity             0

盼高手指点，不胜感谢。









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发信人: gilson (吉鲁森), 信区: Accounting
标  题: Re: 请教。 Journal entry for newly incorporated, with negative
发信站: BBS 未名空间站 (Mon Feb 13 12:58:49 2012, 美东)

real life question?
get a house at 100k and then 180k mortgage? i will default it right away...

anyway, what about debit retain earning?
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发信人: Richard1234 (Rich), 信区: Accounting
标  题: Re: 请教。 Journal entry for newly incorporated, with negative
发信站: BBS 未名空间站 (Mon Feb 13 14:04:57 2012, 美东)

I would default too if it is a nonrecourse debt.

Looks like $30 a current year loss.
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