Exhibit 15-2 Lawrence, Inc., Entered into a Subscription Contract with Several Subscribers

question 27

Multiple Choice

Exhibit 15-2
Lawrence, Inc., entered into a subscription contract with several subscribers that calls for the purchase of 2,000 shares of $5 par common stock for $15 a share. The contract calls for a 20% down payment and specifies that any amounts not paid within the contract period will be forfeited in full.
-Refer to Exhibit 15-2. Lawrence received final payment 80%) on 1,800 shares and issued those shares. Subscribers defaulted on 200 shares. The entry to record the default on 200 shares would include a

• A) debit to Common Stock Subscribed for $3,000.
• B) credit to Subscriptions Receivable: Common Stock for $3,000.
• C) debit to Additional Paid-in Capital on Common Stock for $2,000.
• D) credit to Additional Paid-in Capital from Subscribed Stock for $600.

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