Answer:
Dr Cash 126,000
Dr Compensation expense 14,000
Cr Common stock 14,000
Cr Paid-in capital—in excess of par 126,000
Step-by-step explanation:
Darlington Inc Journal entry
Dr Cash ($10 x 14,000 x 90%) 126,000
Dr Compensation expense ($10 x 14,000 x 10%) 14,000
Cr Common stock ($1 x 14,000) 14,000
Cr Paid-in capital—in excess of par ($9 x 14,000) 126,000