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 company’s discretion. Similar shares were being traded at $28 on March 1. The journal entry to record the issue of subscriptions and deposit receipt 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.
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 company’s discretion. Similar shares were being traded at $28 on March 1. The journal entry to record the issue of subscriptions and deposit receipt 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.
Chapter3: The Financial Environment: Markets, Institutions And Investment Banking
Section: Chapter Questions
Problem 20PROB
Related questions
Question
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 company’s discretion. Similar shares were being traded at $28 on March 1. The journal entry to record the issue of subscriptions and deposit receipt 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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT