Wedding Boutique Corp. sells 20,000 no par value common shares for $20 each to employees on a subscription basis. Terms of the sale require the employees to pay $12 on contract signing and the balance in one year’s time. Wedding Boutique Corp. has a policy of refunding employees their initial payment if they subsequently default on the contract.

Required:
a. Prepare the journal entries required at time of contract signing.
b. Assume that all employees make the scheduled payments. Prepare the required journal entries.
c. Independent of part (b), assume that contracts representing the sale of 5,000 shares are defaulted upon. Prepare the required journal entries pertaining to the default.
d. Given the facts at hand, how would Wedding Boutique Corp. report the subscriptions receivable account on its balance sheet?