Nash, Ltd offered to sell common shares on a subscription basis. Each subscription allowed for the purchase of 14 shares at a price of $72 per share. Terms of the subscription stated that subscribers were to pay 40% of the price as a down payment, with the remainder due in six months. On June 1, 2020, 200 subscriptions were sold. Six months later, on December 1, only 100 of the subscriptions were fully paid for. According to the subscription contract, the company would retain the down payment on any defaulted subscriptions.

Prepare the journal entries to record the above transactions.

Prepare the December 1 journal entry, assuming instead that Nash refunded the down payment on the defaulted subscriptions.

Answer rating: 100% (QA)

Date Account Debit Credit Info Oct1 Cash 5460 cash received 52 35shares 10 per share 30 Stock subscr... View the full answer