Question
On January 2, 20x5, a company offered its employees a share subscription plan. A total of 65 employees subscribed to 100 shares each at the
On January 2, 20x5, a company offered its employees a share subscription plan. A total
of 65 employees subscribed to 100 shares each at the market price on January 2 of $22
per share. The total deposit of 30% was collected on January with the remaining
balance to be collected on December 31. A total of 50 employees made the final
payment on December 31. The remaining 15 had left the company. Company policy is
to not refund any deposits made on share subscription plans. The bookkeeper credited
the cash proceeds to the Common Share account.
Required - Prepare the adjusting journal entry required at December 31, 20x5.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started