On July 1, 2019, Abbott Corporation Received a Subscription from Brad

question 84

Essay

On July 1, 2019, Abbott Corporation received a subscription from Brad Jones for 1,200 shares of its $1 par-value common stock at a price of $20 a share. Jones made a payment of $10 per share on the stock at the time of the subscription. Record the receipt of the subscription and the cash payment on page 1 of a general journal. Then, using the same page of the general journal, record the payment of the balance of Jones' subscription and issuance of the stock on August 1, 2019. Omit the descriptions.

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Definitions:

Existing

Currently present or in existence.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid over a specified period.

Entrusts

To give someone the responsibility to take care of something or act on one's behalf.

Merchant

An individual or business entity engaged in the trade of goods, services, or both to consumers, primarily for earning a profit.