On December 10, 2023, Sully Sports Cars Co. entered into a subscription contract with various investors. The terms were as follows:

2,000 shares of $5 par common at $24.

$10 down payment per share two subsequent payments of $7 to be received by June 10, 2024.

In the event of default, the agreement provides that half of any previous payments will be returned to the subscriber with the remaining half forfeited by the subscriber.

A) Prepare the journal entries to record the subscription and the receipt of the down payment.

B) The remaining 10% of the final payment was not received. Explain how this would be reported in Sullys stockholders equity section of the balance sheet in the year of the default no journal entry is required.