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.
-
Refer to Exhibit 16-2.Lowball received final payment (80%)on 1, 800 shares and issued those shares.Subscribers defaulted on 200 shares.The entry to record the default on 200 shares would include a
A)debit to Common Stock Subscribed for $3, 000
B)credit to Subscriptions Receivable: Common Stock for $3, 000
C)debit to Additional Paid-in Capital on Common Stock for $2, 000
D)credit to Additional Paid-in Capital from Subscribed Stock for $600

Question

Quizplus · Accepted Answer

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.
-
Refer to Exhibit 16-2.Lowball received final payment (80%)on 1, 800 shares and issued those shares.Subscribers defaulted on 200 shares.The entry to record the default on 200 shares would include a
A)debit to Common Stock Subscribed for $3, 000
B)credit to Subscriptions Receivable: Common Stock for $3, 000
C)debit to Additional Paid-in Capital on Common Stock for $2, 000
D)credit to Additional Paid-in Capital from Subscribed Stock for $600