share subscription

Marathon Company is authorized to issue an unlimited number of common shares. To raise capital for the construction of a new store location, the company offers common shares on a subscription basis to interested parties on September 12, 2021. Following are details pertaining to the share subscription 526 Number of share subscriptions sold Number of shares sold in a single subscription Subscription price per share Down payment required at time of subscription 22% Each subscriber made an initial down payment for the shares on September 12, 2021, and agreed to pay the remainder of the subscription price on October 31, 2021. Assume that all subscribers made the initial down payment, but that only 85% of subscribers made the final instalment. All subscribers who paid for their subscriptions in full on October 31 received their shares on the same date. Required: 1. Prepare all of the journal entries required for the subscription contract on each of the following dates: September 12, 2021 October 31, 2021 (only for the 85% of subscribers who paid their subscriptions in full) 2. Prepare the required journal entries on October 31, 2021 for the defaulting subscribers, assuming that the subscription contract states that the investor will forfeit the downpayment, should the subscriber default on the final payment