Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

East Co issued 1.000 shares of its $5 par-value common stock to Howe as compensation for 1 000 hours of legal series performed Howe usualy

image text in transcribed
East Co issued 1.000 shares of its $5 par-value common stock to Howe as compensation for 1 000 hours of legal series performed Howe usualy Ms $160 per hour for legal services On the date of issuance, the stock was trading on a public exchange at $140 per share 8y what amount should the additional paid-in capital account increase as a reset of this transaction? Eart was engaged by Farm Corp to perform consulting services Earl's compensation for these serves consisted of 1 000 shares of Farm s $10 par value common stock, to be issued to Earl on completion of Earl s services Cn tie execution date Earfs employment contract Farm s stock had a market value of $40 per share Six months later, when Earl's series were completed and the stock esued. the stock s market vabe was $50 per share Farm's management services $100,000 in cost savings to the company As a result of this additional

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing For Hospitals

Authors: Seth Allcorn

1st Edition

0894431633, 978-0894431630

More Books

Students also viewed these Accounting questions