Prepare the journal entry to record the stock subscription

Assignment Help Accounting Basics
Reference no: EM132058007

Problem - Righty, inc., entered into stock subscription contract that called for the purchase by investors of 15,000 shares of $ 12 par common stock at a price of $33 per share. The contract required a down payment of $ 15 per share, with the remaining $ 18 per share collectible at the end of three months.

Required:

a. Prepare the journal entry to record the stock subscription and down payment.

b. The subscribers paid the remainder at the end of three months. Prepare the journal entry to record the final payment and the issuance of the shares of stock.

Reference no: EM132058007

Questions Cloud

What magnetic field strength : What magnetic field strength would be required to bend them into a circular path of radius r = 0.26 m?
Review what traits you believe are good to have in a brand : How does this ad impact your belief in the brand or impact your motivation to purchase from this organization?
Spinning disk experiences a constant torque : A spinning disk experiences a constant torque. Which of the quantities - angular acceleration
Review problem on agile delivery framework : Explain why there is no such thing as a best practice, but rather there are only good practices for a given situation for an Agile project.
Prepare the journal entry to record the stock subscription : The contract required a down payment of $ 15 per share, Prepare the journal entry to record the stock subscription and down payment
How does the gravitational force on a falling body : How does the gravitational force on a falling body compare with the air resistance it encounters before it reaches terminal velocity? After terminal velocity?
Why transfers of terminable interests should not qualify : Write one thread of at least 500 words, Topic: Describe a reason why transfers of terminable interests should not qualify for the marital deduction
Define what are the regulatory laws : Research and provide a brief overview of what some of these regulatory laws are, outlining the pros and cons of each of them.
Risk factors as are defined by arbitrage pricing theory : Explain the difference between Asset Classes and Risk Factors as are defined by the Arbitrage Pricing Theory.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd