Question 3.2(Total: 16 marks)

On May 1, 2020, Kruger Inc. accepted subscriptions for 10,000 of its no par value common shares. At this time, the shares were selling for $45 each. A 40% down payment was received with the remainder due in 6 months. On November 1, 2020 the balance of the subscription price was received and the shares were issued.

Required

a.Prepare the journal entries required on May 1, 2020.

b.Prepare the journal entries required on November 1, 2020.