What Is the Entry to Record Subscriptions Received for 1,700

question 124

Multiple Choice

What is the entry to record subscriptions received for 1,700 shares of $100 par value common stock at $130 per share?

• A)Debit Common Stock Subscribed $221,000; credit Cash $221,000
• B)Debit Subscriptions Receivable-Common Stock $221,000; credit Common Stock Subscribed $221,000
• C)Debit Subscriptions Receivable-Common Stock $221,000; credit Common Stock $221,000
• D)None of these answers are correct.

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Definitions:

Interest Rate Risk

The potential for investment losses due to fluctuations in interest rates, affecting the value of interest-bearing assets.

Default Risk

The possibility that a borrower will fail to meet the obligations of a debt agreement.

Adjustable Maturity Dates

Adjustable maturity dates refer to the flexibility allowed in the due dates of financial instruments, allowing for changes in the repayment schedule.

Floating-Rate Bonds

Bonds with variable interest rates that adjust periodically based on a benchmark interest rate or index.