Question Content Area

Lawrence, Inc., entered into a subscription contract with several subscribers that calls for the purchase of $2,000$ shares of $$5$ par common stock for $$15$ a share. The contract calls for a $20\%$ down payment and specifies that any amounts not paid within the contract period will be forfeited in full. The initial entry to record this subscription and the down payment would include a

a$.$ debit to Subscriptions Receivable: Common Stock for $$30,000.$

b$.$ credit to Additional Paid$-$in Capital from Subscribed Stock for $$10,000.$

c$.$ debit to Cash for $$2,000.$

d$.$ credit to Common Stock Subscribed for $$10,000.$