Shares of common stock to a valued employee

Assignment Help Financial Accounting

Reference no: EM131221883

The two original shareholders of a LLC issue 40,000 shares of common stock to a valued employee (vice-president of marketing) who was being wooed by a rival company. The employee pays nothing for the shares, but the employee is prohibited from selling the shares for 5 years and did sign a non-compete agreement. Recall that the stock has a par value of $0.50 per share. However, the original partners estimate that the shares have a market value of $25 per share.

Please prepare all the journal entries for this transaction.

Reference no: EM131221883

Questions Cloud

Construct a 2-d random variable : Construct a 2-D random variable, call it (X, Y), where X relates to the company and Y relates to the system health. Recall that this random variable is not well-defined unless its sample space is also given

What are some of the possible causes of this anxiety : A new employee is likely to be anxious the first few days on the job. What are some of the possible causes of this anxiety? How may the anxiety be reduced?

Exhibit the relevant information in the balance sheet : ABC Lmited issued Rs 10,000, 12% debentures of Rs 100 each payable Rs 30 on application and remaining amount on allotment. The public applied for 9,000 debentures which were fully allotted, and all the relevant allotment money was duly received. Give..

Providing security for an organization : Providing security for an organization can be a costly venture. The cost of safeguarding our information and resources should never exceed the value of that information and resource.

Shares of common stock to a valued employee : The two original shareholders of a LLC issue 40,000 shares of common stock to a valued employee (vice-president of marketing) who was being wooed by a rival company. The employee pays nothing for the shares, but the employee is prohibited from sellin..

Show what happens to output and the real exchange rate : Using graphs, show what happens to output and the real exchange rate under three assumptions about Boversia's monetary policy:

Use of operating income per mascot was in error : “I’ll never understand this accounting stuff,” Blake Dunn yelled, waving the income statement he had just receive in the morning mail. “Last month, we sold 1,000 stuffed state university mascots and earned $6,850 in operating income. Blake plans to s..

Which approach to compensating employees would you prefer : Discuss Southwest Airlines with respect to the major purposes of performance measurement and feedback. Why does thisorganization seems to be more concerned with traits? With behavior? With results? What uses does performance measurement serve in t..

User Account

All Pages