The company is experiencing a cash flow shortfall and has asked certain key employees to accept shares

Question:

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 25,000 shares of $0.50 par common stock in place of salaries of $700,000. Make the necessary journal entry.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...