Question
On July 15, Reagan, Inc. was incorporated and subsequently entered into a subscription contract to sell 10,000 shares of $10 par common stock at a
On July 15, Reagan, Inc. was incorporated and subsequently entered into a
subscription contract to sell 10,000 shares of $10 par common stock at a price of
$22/share. The contract requires a down payment of 10%, with the remaining
balance to be paid on October 1. The stock will be issued to each subscriber upon full
payment. Assume that no other transactions affected common stock during the year.
A total of 9,000 shares were paid for under the subscription agreement, and the
remaining 1,000 shares were sold to the market at $9/share on October 2.
What is the balance in the Common Stock account as of December 31?
A. $90,000
B. $99,000
C. $100,000
D. $193,000
E. $207,000
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