Toiz-4-Boiz [T-4-B] is a manufacturer of electronic game hardware and game software. The company issued subscriptions for 250,000 no par value common shares at an issue price of $24 per share on March 1, 2018. The issue terms called for a 20% payment on application, a second instalment of 25% payable two months later and the balance due on demand at the companys discretion. Similar shares were being traded at $28 on March 1. [19] The journal entry to record the issue of subscriptions would be:

Select one:

a.

DR Share Subscriptions Receivable $5,600,000;

DR Cash $1,400,000;

CR Common Shares Subscribed $7,000,000

b.

DR Share Subscriptions Receivable $5,600,000;

DR Cash $1,400,000;

CR Common Shares Capital $7,000,000

c.

DR Cash $1,400,000;

CR Common Shares Capital $1,400,000

d.

DR Share Subscriptions Receivable $4,800,000;

DR Cash $1,200,000;

CR Common Shares Subscribed $6,000,000

e.

none of the above entries