Kramers Inc. sells 1,000 common shares on March 1 to its employees at $25 per share. Kramers

Question:

Kramers Inc. sells 1,000 common shares on March 1 to its employees at $25 per share. Kramers lends the money to the employees to buy the new shares. The employees pay 50% of the price on the transaction date and pay the balance in one year.
(a). Prepare the company’s necessary journal entries.
(b). Assuming a December 31 fiscal year end, how should the receivable for the uncollected amount on the share issue be presented on the
(1) Under private enterprise GAAP,
(2) Under IFRS? Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...