Rip-Off Fuels Inc. is an operator of gas stations. On March 1, 2022, they issued subscriptions for 100,000 common shares for an issue price of $30. A deposit of 30% was made by all subscribers on that date, and the balance is to be remitted on August 1. Assuming that on August 1, subscriptions representing 3,000 shares failed to remit the balance due- and forfeit their deposit.[27] The journal entry to record the August 1 receipt of amountS paid by subscribers, and subsequent forfeiture would be: Select one:a.DR Cash $2,100,000CR Share subscription receivable $2,037,000CR Contributed surplus-forfeiture $ 73,000b.DR Cash $2,037,000CR Share subscription receivable $2,100,000DR Common shares subscribed $90,000CR Contributed surplus-forfeiture $27,000c.Cash $2,037,000CR Share subscription receivable $2,037,000DR Common shares subscribed $27,000CR Contributed surplus-forfeiture $27,000.d.DR Cash $2,037,000CR Share subscription receivable $2,037,000e.None of the above.

Journal entries shows the recording of transaction during an accounting year

Answered: Rip-Off Fuels Inc. is an operator of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Rip-Off Fuels Inc. is an operator of gas stations. On March 1, 2022, they issued subscriptions for 100,000 common shares for an issue price of $30. A deposit of 30% was made by all subscribers on that date, and the balance is to be remitted on August 1. Assuming that on August 1, subscriptions representing 3,000 shares failed to remit the balance due- and forfeit their deposit.

[27] The journal entry to record the August 1 receipt of amountS paid by subscribers, and subsequent forfeiture would be:

Select one:

DR Cash $2,100,000
CR Share subscription receivable $2,037,000
CR Contributed surplus-forfeiture $ 73,000

DR Cash $2,037,000
CR Share subscription receivable $2,100,000
DR Common shares subscribed $90,000
CR Contributed surplus-forfeiture $27,000

Cash $2,037,000
CR Share subscription receivable $2,037,000
DR Common shares subscribed $27,000
CR Contributed surplus-forfeiture $27,000
.

DR Cash $2,037,000
CR Share subscription receivable $2,037,000

None of the above.

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