Righty, Inc

question 65

Essay

Righty, Inc., entered into a stock subscription contract that called for the purchase by investors of 15,000 shares of
$12 par common stock at a price of $33 per share. The contract required a down payment of $15 per share, with the remaining $18 per share collectible at the end of three months.
Required:
a. Prepare the journal entry to record the stock subscription and down payment.
b. The subscribers paid the remainder at the end of three months. Prepare the journal entryies) to record the final payment and the issuance of the shares of stock.

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Definitions:

Customer Orders

Requests made by customers for goods or services from a business, which need to be fulfilled.

SCM

Supply Chain Management (SCM) involves overseeing and managing the flow of goods and services, including all processes that transform raw materials into final products.

Logistics

The process of planning, implementing, and controlling the efficient, effective forward, and reverse flow and storage of goods, services, and related information from point of origin to point of consumption.

Return Component

An element of a system or device that is designated to be sent back to the manufacturer or repair center for refurbishment, repair, or recycling.