Respuesta :
Answer:
The journal entries are as follows:
(i) On January 1, 2014
Unearned compensation A/c(2,000 × $65) Dr. $130,000
     To paid in capital in excess of par ($130,000 - $10,000)   $120,000
     To common stock (2,000 × $5)         $10,000
(To record the unearned compensation)
(ii) On December 31, 2014
Compensation expense A/c Dr. $65,000
      To unearned compensation     $65,000
(To record the compensation expense)
Workings:
Compensation expense = $130,000 ÷ 2
                    = $65,000
(iii) On December 31, 2015
Compensation expense A/c Dr. $65,000
      To unearned compensation     $65,000
(To record the compensation expense)
