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Aliun [14]
3 years ago
9

H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H

. Tillman a legal fee of approximately $12800 by issuing 3100 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $3.90 per share. Given this information, the journal entry for J. Laney. to record this transaction is:
Business
1 answer:
tresset_1 [31]3 years ago
3 0

Answer:

The journal entry for J. Laney to record this transaction is

Dr legal expenses $12,990

______Cr Common stock $3,100

_______Cr Share premium $8,990

Explanation:

The common stocks are carried at par value of $1. This implies that any price paid in excess of the par value is made provision for in the share premium account.

Again, the common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.

Share premium = ($3.90 - $1) × 3,100

Share premium = $8,990

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But we must check that her deduction meets 3 requirements:

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Which person would most likely purchase a life insurance policy with a $1 million death benefit?
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I would say D, you don’t need a million dollar death benefit if you have no one to claim it.
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Answer: Option B is correct.

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Option C is incorrect because Digi Now Inc. is offering services to upper class, which means it will charge higher prices for superior customer services. Silver Screen Cinemas Inc. will charge lower prices for lower level of customer services.

Option D is incorrect because one is competing on quality whereas the other is competing on cost. So it is impossible for the one who is competing on cost to offer everything to everyone.

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"Controlling " is the right approach.

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