Smart Corporation owes a trade creditor $ 30,000 on open account which the corporation does not have sufficient cash to pay. The trade creditor suggests that Smart Corporation issue to him 750 shares of the $ 24 par value common stock, which is currently selling on the market at $ 40. Present the entry or entries that should be made on Smart Corporation’s books.
Smart Corporation owes a trade creditor $ 30,000 on open account which the corporation does not have sufficient cash to pay. The trade creditor suggests that Smart Corporation issue to him 750 shares of the $ 24 par value common stock, which is currently selling on the market at $ 40. Present the entry or entries that should be made on Smart Corporation’s books.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Smart Corporation owes a trade creditor $ 30,000 on open account which the corporation does not have sufficient cash to pay. The trade creditor suggests that Smart Corporation issue to him 750 shares of the $ 24 par value common stock, which is currently selling on the market at $ 40. Present the entry or entries that should be made on Smart Corporation’s books.
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