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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.

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