Lorella entered into a common share subscription contract for 1,000 shares at a subscription price of $20.She paid 20% of the total price as a down payment and also paid the next two 20% instalments (she paid 60% in all).Lorella then defaulted on the contract and refused to pay any more.Assuming the company must issue shares in proportion to the cash paid,the entry to record the default would include:

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The Answer of Lorella entered into a common share subscription contract for 1,000 shares at a subscription price of $20.She paid 20% of the total price as a down payment and also paid the next two 20% instalments (she paid 60% in all).Lorella then defaulted on the contract and refused to pay any more.Assuming the company must issue shares in proportion to the cash paid,the entry to record the default would include:

Lorella Entered into a Common Share Subscription Contract for 1,000