Assume that a start-up manufacturing company raises capital through a series of equity issues.

Required:

Using the financial statement template below, summarize the financial statement effects of the following transactions.

(a) Receives subscriptions for the issue of 30,000 shares of $1.50 par value common. The share issue price is $15.50 of which 25 percent is received as a down payment.

(b) Subsequently, the remaining 75 percent is received from the transaction in 3(a).