On January 1, 2014, DDB Agreed to Purchase 4,000 of CTC's

question 134

Multiple Choice

On January 1, 2014, DDB agreed to purchase 4,000 of CTC's common shares at $5 per share.Cash payment in full, including 10% interest, is to be paid one year later at which time the shares will be issued.The appropriate journal entry for CTC to record the transaction on January 1, 2014, would include a:

• A)Credit to Common Shares Subscribed for $20,000.
• B)Debit to Cash for $20,000.
• C)Credit to Cash $20,000.
• D)Debit to Subscriptions Receivable for $18,000.

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Definitions:

Technical Communication

The process of conveying user-friendly information about technology, products, or services to a specific audience through various forms of media.

Celerity

Swiftness of movement or action.

Terseness

The quality of being concise and to the point, often characterized by a minimalist use of words to convey information effectively.

Conciseness

The quality of being brief and to the point, eliminating unnecessary words or details.