1.

Rip-Off Fuels Inc. is an operator of gas stations. On March 1, 2022, they issued subscriptions for 100,000 common shares for an issue price of $30. A deposit of 30% was made by all subscribers on that date, and the balance is to be remitted on August 1. Assuming that on August 1, subscriptions representing 3,000 shares failed to remit the balance due- and forfeit their deposit.

[27] The journal entry to record the August 1 receipt of amountS paid by subscribers, and subsequent forfeiture would be:

Select one:

a.

DR Cash $2,100,000 CR Share subscription receivable $2,037,000 CR Contributed surplus-forfeiture $ 73,000

b.

DR Cash $2,037,000 CR Share subscription receivable $2,100,000 DR Common shares subscribed $90,000 CR Contributed surplus-forfeiture $27,000

c.

Cash $2,037,000 CR Share subscription receivable $2,037,000 DR Common shares subscribed $27,000 CR Contributed surplus-forfeiture $27,000 .

d.

DR Cash $2,037,000 CR Share subscription receivable $2,037,000

e.

None of the above.

2.

he journal entry to record only the shares issued on August 1 would be:

Select one:

a.

DR Common shares subscribed $2,910,000 CR Common shares $2,910,000

b.

DR Common shares subscribed $3,000,000 CR Common shares $3,000,000

c.

DR Common shares subscribed $2,937,000 CR Common shares $2,937,000

d.

DR Common shares subscribed $2,100,000 CR Common shares $2,100,000

e.

DR Common shares subscribed $3,000,000 CR Common shares $2,910,000 CR Contributed surplus-forfeiture $ 90,000