DizzeyLand, Inc., had issued subscriptions for common shares on March 1, 2020. 40% of the subscription was to be paid by the subscribers on April 1 and the balance on June 1. The company would thereafter issue the shares on June 15.
On April 1, the company received the funds for the first instalment and prepared the following journal entry to record the transaction:
DR Cash $446,400
CR Share Subscription Receivable $446,000
On June 1, 2,000 subscribers failed to pay the second instalment and their subscriptions were forfeited. The company received the funds due on the second instalment from the remaining subscribers and prepared the following journal entry to record the transaction:
DR Cash $446,400
CR Share Subscription Receivable $446,000
For how many shares were the subscriptions issued on March 1, 2020 by DizzeyLand?

Select one:
a. 62,000
b. 60,000
c. 64,000
d. 37,200
e. None of the above but some other number

Answer rating: 100% (QA)

Correct option is Option E ie None of the above but some other nu... View the full answer