Journalize the Transactions for the Stock Subscription Plan for Oro

question 52

Essay

Journalize the transactions for the stock subscription plan for Oro Company. On March 1, Oro received subscriptions for 120 shares of $15 par value common stock at $20 per share. The buyer will pay two equal installments on April 1 and July 1. Assume all payments are made as scheduled and the company issues the stock on August 1.

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Definitions:

Retailers

Businesses or individuals that sell goods directly to consumers for their use and consumption, acting as the final link in the supply chain.

Vertical Contracts

Agreements between companies at different levels of the supply chain, such as between a manufacturer and a retailer, to govern the terms of purchase and sale.

Manufacturer's Belief

The perceptions or convictions held by manufacturers regarding the market, product quality, or the effectiveness of production processes.

Retailers

Retailers are businesses or individuals that purchase goods from manufacturers or wholesalers and sell them directly to consumers.