INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
9th Edition
ISBN: 9781260216141
Author: SPICELAND
Publisher: MCG CUSTOM
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Question
Chapter 19, Problem 19.11E
To determine
Employee share purchase plans: This is the plan offered by the company, which permits employees to buy the shares directly from the company, at discounted price. This plan is intended to encourage employee ownership in the shares of the company, and develop loyalty among the employee-shareholders.
Debit and credit rules:
- Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in
stockholders’ equity accounts. - Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.
To journalize: The entry for purchase of shares under employee share purchase plan, in the books of W Distribution.
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Exercise 19-11 (Algo) Employee share purchase plan; MacroApps [LO19-3]
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Exercise 19-24 (Algo) New shares; contingently issuable shares [LO19-6,19-12]
During 2024, its first year of operations, Kevin Berry Industries entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 100 million common shares, $1 par per share.
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Chapter 19 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
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