The Palya Company entered into a subscription contract on April 1, 2007. The agreement required the subscribers to purchase 5,000 shares of $10 par value common stock for $75,000. A down payment of $20,000 was received on the same day. The contract requires payment in full prior to issuance of the shares. The remaining balance was collected on June 1, 2007. Which of the following statements, with respect to Palya Company, is true about this transaction?

A. Common stock was credited $50,000 on April 1.

B. Additional paid-in capital on common stock was credited $25,000 on April 1.

C. Subscriptions receivable had a balance of $50,000 on April 1.

Answer rating: 100% (QA)

Answer Additional paidin capital on comm... View the full answer