Bookkeeping

What is the journal entries for the following?

Share based compensation
I’m paid a $1,000 salary in addition to stock compensation:

Name: Nic Ferreira
Contract amount: $9,000, of which 90% is common stock and 10% is preferred stock
Par value: $.001

Contributed Capital (investor)
The capital was wired into our account last Thursday

Investor name: Henry D.
Amount: $10,000
Par value: $.001

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Answer

  1. 74 Answers

    Hi there the entries are below:

    Share-Based Compensation
    DR: Salaries and wages $9,000
    CR: Common Stock $8,100
    CR: Preferred Stock $900

    If this is monthly compensation then divide the amounts by the number of months.

    Investor Capital
    DR: Bank Account where deposited $10,000
    CR: Additional paid-in capital

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