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Journalize the Transactions for the Stock Subscription Plan for Nick

question 95

Essay

Journalize the transactions for the stock subscription plan for Nick Company.On February 1,Nick received subscriptions for 100 shares of $10 par value common stock at $12 per share.The buyer will pay two equal installments on March 1 and June 1.Assume all payments are made as scheduled and the company issues the stock after the June 1 collection.


Definitions:

Medicare Taxes

Taxes deducted from paychecks to fund the Medicare program, which provides health insurance to individuals over 65 or with certain disabilities.

Contingent Liabilities

Liabilities that may arise from past transactions if certain events occur in the future.

Past Transactions

Historical financial activities that have occurred and been recorded within a business.

Defined Contribution Plans

A type of retirement plan in which the employer, employee, or both make contributions to an individual's retirement account, with future benefits depending on the investment's performance.

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