Toiz-4-Boiz [T-4-B] is a manufacturer of electronic game hardware and game software.The company issued subscriptions for 250,000 no par value common shares at an issue price of $24 per share on March 1, 2018. The issue terms called for a 20% payment on application, a second instalment of 25% payable two months later and the balance due on demand at the company’s discretion. Similar shares were being traded at $28 on March 1. The journal entry to record the issue of subscriptions and deposit receipt would be Select one: a. DR Share Subscriptions Receivable $5,600,000; .DR Cash 1,400,000; CR Common Shares Subscribed $7,000,000. b. DR Share Subscriptions Receivable $5,600,000; .DR Cash 1,400,000; CR Common Shares Capital $7,000,000. c. DR Cash 1,400,000; CR Common Shares Capital $1,400,000. d. DR Share Subscriptions Receivable $4,800,000; .DR Cash 1,200,000; CR Common Shares Subscribed $6,000,000. e. None of the above entries.
Toiz-4-Boiz [T-4-B] is a manufacturer of electronic game hardware and game software.The company issued subscriptions for 250,000 no par value common shares at an issue price of $24 per share on March 1, 2018. The issue terms called for a 20% payment on application, a second instalment of 25% payable two months later and the balance due on demand at the company’s discretion. Similar shares were being traded at $28 on March 1. The journal entry to record the issue of subscriptions and deposit receipt would be Select one: a. DR Share Subscriptions Receivable $5,600,000; .DR Cash 1,400,000; CR Common Shares Subscribed $7,000,000. b. DR Share Subscriptions Receivable $5,600,000; .DR Cash 1,400,000; CR Common Shares Capital $7,000,000. c. DR Cash 1,400,000; CR Common Shares Capital $1,400,000. d. DR Share Subscriptions Receivable $4,800,000; .DR Cash 1,200,000; CR Common Shares Subscribed $6,000,000. e. None of the above entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Toiz-4-Boiz [T-4-B] is a manufacturer of electronic game hardware and game software.The company issued subscriptions for 250,000 no par value common shares at an issue price of $24 per share on March 1, 2018. The issue terms called for a 20% payment on application, a second instalment of 25% payable two months later and the balance due on demand at the company’s discretion. Similar shares were being traded at $28 on March 1. The journal entry to record the issue of subscriptions and deposit receipt would be
Select one:
a.
DR Share Subscriptions Receivable $5,600,000; .DR Cash 1,400,000; CR Common Shares Subscribed $7,000,000.
b.
DR Share Subscriptions Receivable $5,600,000; .DR Cash 1,400,000; CR Common Shares Capital $7,000,000.
c.
DR Cash 1,400,000; CR Common Shares Capital $1,400,000.
d.
DR Share Subscriptions Receivable $4,800,000; .DR Cash 1,200,000; CR Common Shares Subscribed $6,000,000.
e.
None of the above entries.
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