Question

On August 3, 2010, the date of incorporation, the Quinn Company accepts separate subscriptions for 1,000 shares of $100 par preferred stock at $104 per share and 9,000 shares of no-par, no-stated-value common stock for $22 per share. The subscription contracts require a 10% down payment, with the balance due by November 1, 2010. Shares are issued to each subscriber upon full payment. Any defaulted shares will be sold on November 2, 2010, and the down payment returned to the defaulting subscribers.
On November 1, the company received the remaining balances for 920 shares of preferred stock and 8,900 shares of common stock. The defaulted preferred shares and common shares were sold for $105 and $22.50 per share, respectively, on November 2, and the down payment was returned to the defaulting subscribers.

Required
Prepare journal entries to record all the transactions related to
1. The preferred stock
2. The common stock



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  • CreatedDecember 09, 2013
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