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The company is experiencing a cash flow shortfall and has asked certain key employees to accept shares of common stock (instead of cash) in

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The company is experiencing a cash flow shortfall and has asked certain key employees to accept shares of common stock (instead of cash) in payment of salaries. The employees accepted 35,000 shares of $0.50 par common stock in place of salaries of $575,000. Make the necessary journal entry.

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