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Svetlanka [38]
3 years ago
14

Darlington Inc., permits any of its employees to buy shares directly from the company. There are no brokerage fees and shares ca

n be purchased at a 10% discount. During May, employees purchased 14,000 shares at a time when the market price of the shares was $10 per share. Prepare the appropriate journal entry for the May purchase. (
Business
2 answers:
WINSTONCH [101]3 years ago
6 0

Answer: Please refer to Explanation

Explanation:

The following is the appropriate journal entry.

DR Bank Account (14,000 * 10 - 10%) $126,000

DR Employee Compensation Expense (10% * $140000) $14,000

CR Share Capital Account $140,000

(To record issue of shares to employees)

If you need any clarification do comment.

tino4ka555 [31]3 years ago
3 0

Answer:

Dr Cash 126,000

Dr Compensation expense 14,000

Cr Common stock 14,000

Cr Paid-in capital—in excess of par 126,000

Explanation:

Darlington Inc Journal entry

Dr Cash ($10 x 14,000 x 90%) 126,000

Dr Compensation expense ($10 x 14,000 x 10%) 14,000

Cr Common stock ($1 x 14,000) 14,000

Cr Paid-in capital—in excess of par ($9 x 14,000) 126,000

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Answer:

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Explanation:

The cash proceeds derived from issuing the bonds can be computed as follows:

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The first payment=$201,250*10%*6/12=$10,063 as it also found in the attached

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3 years ago
A loan to a company or government that pays investors a fixed rate of truth over a specific timeframe is known as:
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Answer:

4. Bonds

Explanation:

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2 years ago
Doodle inc., a renowned interior design services company, tries to increase its customer base through web presence. it regularly
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3 years ago
For each of the following, state whether the events created are mutually exclusive and whether they are collectively exhaustive.
8_murik_8 [283]

Answer:

Explanation:

- mutually exclusive (ME): If one event occur the other doesn't

- collectively exhaustive (CE): one of the events must occur

a. Undergraduate business students were asked whether they were sophomores or juniors: ME

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3 years ago
A small metal shop operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, how many hours woul
ipn [44]

Answer:

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Explanation:

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