Culver Inc. sells 1480 common shares on a subscription basis at 61% per share on June 1 and accepts a 45% down payment. On December 1 Bonata collects the remaining 55% and issues the shares.

prepare journal entries of the company.

1)date A/c titles & explanation Dr. Cr.

june1.

(to record the sale of shares on a subscription basis)

2)date A/c titles& explanation Dr. Cr.

june 1

( to record collection of down payment)

3)Dec 1 A/c titles. Dr. Cr

( collection of share subscription receivable)

4)Dec1 A/c titles. Dr. Cr.

( to record issuance of shares)