11) Journalize the transactions for the stock subscription plan for Nick Company. On February 1, Nick received subscriptions for 80 shares of $10 par value common stock at $12 per share. The buyer will pay two equal installments on March 1 and June 1. Assume all payments are made as scheduled and the company issues the stock after the June 1 collection.

 

12) Journalize the transactions for the stock subscription plan for Rico Company. On February 1, Rico received subscriptions for 50 shares of $9 par value common stock at $16 per share. The buyer will pay two equal installments on March 1 and June 1. Assume all payments are made as scheduled and the company issues the stock after the June 1 collection.

13) Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par, Common Stock, Cash. Also list the financial statement where the accounts are found.

 

14) Describe a stock subscription plan.

 

 

 



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