Exhibit 15-2 Lawrence, Inc

question 88

Multiple Choice

Exhibit 15-2 Lawrence, Inc., entered into a subscription contract with several subscribers that calls for the purchase of 2,000 shares of $5 par common stock for $15 a share. The contract calls for a 20% down payment and specifies that any amounts not paid within the contract period will be forfeited in full.

-Refer to Exhibit 15-2. Lawrence received final payment (80%) on 1,800 shares and issued those shares. Subscribers defaulted on 200 shares. The entry to record the default on 200 shares would include a

• A) debit to Common Stock Subscribed for $3,000
• B) credit to Subscriptions Receivable: Common Stock for $3,000
• C) debit to Additional Paid-in Capital on Common Stock for $2,000
• D) credit to Additional Paid-in Capital from Subscribed Stock for $600

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Definitions:

Mortality

The state of being subject to death; often used in statistics to refer to the rate of death in a population.

Income

Money received, especially on a regular basis, for work or through investments.

Individual Behaviours

Actions or reactions of an individual, guided by personal reasons, motivations, or psychological processes.

Education

is the process of facilitating learning, or the acquisition of knowledge, skills, values, and habits through various forms of teaching, training, or research.