Question
On February 3, Teel Corporation enters into a subscription contract with several subscribers for 7,000 shares of $10 par common stock at a price of
On February 3, Teel Corporation enters into a subscription contract with several subscribers for 7,000 shares of $10 par common stock at a price of $15 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3. The stock will be issued to each subscriber upon full payment.
Required:
Prepare journal entries to record the following: | |
1. | The February 3 receipt of the down payment and signing of the contract. |
2. | The May 3 receipt of the full remaining balance from subscribers. The market price is currently $16 per share. |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Teel Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Prepare journal entries to record the February 3 receipt of the down payment and signing of the contract. Additional Instruction
PAGE 1
GENERAL JOURNAL
DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
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1 |
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2 |
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3 |
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4 |
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Prepare journal entries to record the May 3 receipt of the full remaining balance from subscribers. The market price is currently $16 per share.
PAGE 1
GENERAL JOURNAL
DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 |
| ||||
2 |
| ||||
3 |
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4 |
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