Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Preferred Associates recently hired Gettman Brothers to develop an online sales system for its consumer products division. Gettman wanted to be paid in Preferred common
Preferred Associates recently hired Gettman Brothers to develop an online sales system for its consumer products division. Gettman wanted to be paid in Preferred common shares. As a result, Gettman accepted 18,000 shares of Preferred Associates' \$5 par value common shares. On the date the online system was fully functional, the contract was satisfied and Preferred issued the shares to Gettman. Preferred shares were not publicly traded but were valued at $145 per share on that date by an investment bank. Because the shares are privately placed, there are no stock issue costs. Prepare the journal entry to record the development of the online system. (Record debits first, then credits. Exclude explanations from any journal entries.)
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