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 balance sheet
(1) Under private enterprise GAAP,
(2) Under IFRS?


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  • CreatedAugust 23, 2015
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