Question 1 (10 marks)

On May 30, 2020, Rose Hill Corporation accepted subscriptions for 10,000 common shares. On that date, the shares were selling for $30 each. Subscribers paid 40% down and must pay the remainder in six months. On September 30, 2020, the balance of the subscription price was received, and the shares were issued.

Instructions

Prepare all journal entries related to the share subscriptions.