Splish Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for the purchase of 20 shares at a price of $80 per share. Terms of the subscription stated that subscribers were to pay 40% of the price as a down payment, with the remainder due in six months. On June 1, 2020, 210 subscriptions were sold. Six months later, on December 1, only 105 of the subscriptions were fully paid for. According to the subscription contract, the company would retain the down payment on any defaulted subscriptions.

Current Attempt in Progress Splish Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for the purchase of 20 shares at a price of $80 per share. Terms of the subscription stated that subscribers were to pay 40% of the price as a down payment with the remainder due in six months. On June 1, 2020, 210 subscriptions were sold. Six months later, on December 1, only 105 of the subscriptions were fully paid for. According to the subscription contract, the company would retain the down payment on any defaulted subscriptions. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date June 1 1600 Account Titles and Explanation Share Subscriptions Receivable Common Shares Subscribed (To record sale of shares on a subscription basis) Cash 640 June 1 Share Subscriptions Receivable (To record collection of down payment) Share Subscriptions Receivable Common Shares Subscribed (Collection of share subscriptions receivable) 960 (To record issuance of shares) (To record forfeit of payment from defaulting subscribers) Prepare the December 1 journal entry, assuming instead that Splish refunded the down payment on the defaulted subscriptions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Dec 1 (To record refund to defaulting subscribers) e Textbook and Media