Tory Company received the first installment of $2,000 on a common stock subscription.The entry to record the collection would include a:

Question

Quizplus · Accepted Answer

When a company receives the first installment on a common stock subscription, the entry to record the collection includes a credit to Subscriptions Receivable-Common Stock for the amount received ($2,000 in this case). This account represents the amount of common stock subscribed but not yet fully paid for. Therefore, the correct answer is D, which includes a credit to Subscriptions Receivable-Common Stock. The other answer choices are not correct because they either do not include this account or credit the wrong account.

Tory Company Received the First Installment of $2,000 on a Common