Briefly explain the differences between U.S. GAAP and International Financial
Reporting Standards (IFRS) in accounting for government grants for the purchase of
assets.
In order to encourage employee ownership of the company’s $1 par common shares, T
Corp. permits any of its employees to buy shares directly from the company through
payroll deduction. There are no brokerage fees and shares can be purchased at a 15%
discount. During June, employees purchased 150,000 shares at a time when the market
price of the shares on the New York Stock Exchange was $10 per share.
Required:
Prepare the appropriate journal entry to record the June purchases of shares under the
employee share purchase plan.
Explain the transactions that typically would affect the discount on notes receivable
account.
Discuss the following questions.
Required:
What securities must be classified within one of the three categories of held to maturity,
available for sale, and trading? (Do not describe how to determine how securities are
classified among these three categories.) Identify the four primary recording activities
related to investments in securities.
Define what it is meant by internal control.