6The Bean Counter Corporation received subscriptions for 100 shares of its $12 par value common stock at $15 per share. The entry to record receipt of the subscriptions would include a:

		debit to Cash $1,500 and a credit to Common Stock $1,500.
		debit to Cash $1,500; a credit to Common Stock $1,200; and a credit to Paid-in Capital in Excess of Par ValueCommon $300.
		debit to Common Stock Subscribed $1,500 and a credit to Subscriptions Receivable-Common Stock $1,500.
		debit to Subscriptions ReceivableCommon Stock $1,500; a credit to Common Stock Subscribed $1,200; and a credit to Paid-in Capital in Excess of Par ValueCommon for $300.

7Common Stock Subscribed is:

		shown as an equity account below Issued Common Stock.
		a contra-asset account.
		a receivables account.
		shown on the income statement as a revenue.

8

When a stock subscription is received, Common Stock subscribed is debited for the total par value of the stock.

True

False

9The journal entry for the receipt of a cash payment on common stock subscriptions would include:

		debiting Subscriptions ReceivableCommon Stock; crediting Common Stock.
		debiting Common Stock; crediting Subscriptions ReceivableCommon Stock.
		debiting Cash; crediting Subscriptions ReceivableCommon Stock.
		debiting Cash; crediting Common Stock Subscribed.

10Nature's Honey Corporation received the final installment of $1,000 on a stock subscription for 20 shares of $100 par value common stock. After recording the cash receipt, the entry to issue the stock would include a:

		debit to Paid-in Capital in Excess of Par ValueCommon for $2,000.
		credit to Paid-in Capital in Excess of Par ValueCommon for $2,000.
		debit to Common Stock for $2,000.
		debit to Common Stock Subscribed for $2,000.