Question
VOF is authorized to issue 32,000 no par value common shares. Subscribers agree to purchase shares at $12 per share with a 25% down payment
VOF is authorized to issue 32,000 no par value common shares. Subscribers agree to purchase shares at $12 per share with a 25% down payment and two equal future installments. Subscribers agree to purchase 6,000 shares on April 1, 2019, and make the required down payment.
The journal entry to record the subscriptions would be
Select one:
a.
DR Share Subscriptions Receivable, $54,000; DR Cash, $18,000; CR Common Shares Subscribed, $72,000
b.
DR Share Subscriptions Receivable, $54,000; DR Cash, $18,000; CR Common Shares Capital, $72,000
c.
DR Cash Receivable, $72,000; CR Common Shares Capital, $72,000
d.
DR Share Subscriptions Receivable, $72,000; CR Common Shares Subscribed, $72,000
e.
none of the above entries.
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