Exhibit 16-2 Lowball, 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.
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Refer to Exhibit 16-2.Lowball received final payment (80%)on 1, 800 shares and issued those shares.Subscribers defaulted on 200 shares.The entries to record receipt of final payment and issuance of 1, 800 shares would include a
A)debit to Cash for $24, 000
B)credit to Subscriptions Receivable: Common Stock for $21, 600
C)debit to Common Stock Subscribed for $10, 000
D)credit to Common Stock for $9, 000

Question

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The Answer of Exhibit 16-2 Lowball, 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.
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Refer to Exhibit 16-2.Lowball received final payment (80%)on 1, 800 shares and issued those shares.Subscribers defaulted on 200 shares.The entries to record receipt of final payment and issuance of 1, 800 shares would include a
A)debit to Cash for $24, 000
B)credit to Subscriptions Receivable: Common Stock for $21, 600
C)debit to Common Stock Subscribed for $10, 000
D)credit to Common Stock for $9, 000