KIRKLAND Inc is a manufacturer of electronic game hardware and game software. The company issued subscriptions for 50,000 no par value common shares at an issue price of $24 per share on March 1, 2020. 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 a] DR Share Subscriptions Receivable $1,120,000 DR Cash 280,000 CR Common Shares Subscribed $1,680,000 b] DR Share Subscriptions Receivable $1120,000 DR Cash $280,000 CR Common Shares Capital c] DR Cash $280,000 $1,400,000 CR Common Shares Capital $280,000 d] DR Share Subscriptions Receivable $960,000 DR Cash $240,000 CR Common Shares Subscribed $1,200,000 e] None of the above entries. answer with all work
2. KIRKLAND Inc is a manufacturer of electronic game hardware and game software. The company issued subscriptions for 50,000 no par value common shares at an issue price of $24 per share on March 1, 2020. 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
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a] DR Share Subscriptions Receivable $1,120,000 |
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DR Cash 280,000 |
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CR Common Shares Subscribed |
$1,680,000 |
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b] DR Share Subscriptions Receivable $1120,000 |
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DR Cash $280,000 |
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CR Common Shares Capital c] DR Cash $280,000 |
$1,400,000 |
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CR Common Shares Capital |
$280,000 |
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d] DR Share Subscriptions Receivable $960,000 |
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DR Cash $240,000 |
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CR Common Shares Subscribed |
$1,200,000 |
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e] None of the above entries. |
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