Multiple Choice
Lorella entered into a common share subscription contract for 1,000 shares at a subscription price of $20.She paid 20% of the total price as a down payment and also paid the next two 20% instalments (she paid 60% in all) .Lorella then defaulted on the contract and refused to pay any more.Assuming the company must issue shares in proportion to the cash paid,the entry to record the default would include:
A) dr. common shares $12,000
B) dr. common shares subscribed $12,000
C) dr. subscriptions receivable $8,000
D) dr. common shares subscribed $20,000
Correct Answer:
Verified
Correct Answer:
Verified
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