On February 3, 2019, Teel Corporation enters into a subscription contract with several subscribers for 5,000 shares

Question:

On February 3, 2019, Teel Corporation enters into a subscription contract with several subscribers for 5,000 shares of $10 par common stock at a price of $16 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, 2019. The stock will be issued to each subscriber upon full payment.

Required:
Prepare journal entries to record the following:
1. The February 3 receipt of the down payment and signing of the contract.
2. The May 3 receipt of the full remaining balance from subscribers. The market price is currently $17 per share.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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