On February 3, 2019, Teel Corporation enters into a subscription contract with several subscribers for 7,000...

Transcribed Image Text:

On February 3, 2019, Teel Corporation enters into a subscription contract with several subscribers for 7,000 shares of $10 par common stock at a price of $15 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, 2019. The stock will be issued to each subscriber upon full payment. Required: Prepare journal entries to record the following: 1. The February 3 receipt of the down payment and signing of the contract. 2. The May 3 receipt of the full remaining balance from subscribers. The market price is currently $16 per share. General Journal General Journal Instructions Shaded cells have feedback. How does grading work? 1 2 3 GENERAL JOURNAL ACCOUNT TITLE DATE May 3 Cash Common Stock Subscribed Subscriptions Receivable Common Stock PAGE 1 Score: 28/51 POST. REF. DEBIT CREDIT 60,000.00 60,000.00 50,000.00 50,000.00 On February 3, 2019, Teel Corporation enters into a subscription contract with several subscribers for 7,000 shares of $10 par common stock at a price of $15 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, 2019. The stock will be issued to each subscriber upon full payment. Required: Prepare journal entries to record the following: 1. The February 3 receipt of the down payment and signing of the contract. 2. The May 3 receipt of the full remaining balance from subscribers. The market price is currently $16 per share. General Journal General Journal Instructions Shaded cells have feedback. How does grading work? 1 2 3 GENERAL JOURNAL ACCOUNT TITLE DATE May 3 Cash Common Stock Subscribed Subscriptions Receivable Common Stock PAGE 1 Score: 28/51 POST. REF. DEBIT CREDIT 60,000.00 60,000.00 50,000.00 50,000.00

Answer rating: 100% (QA)

1 The journal entry to record the February receipt of the down payment and signing of the contract w... View the full answer