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:

Microscopic Structure

The detailed architecture of an object that is too small to be seen with the naked eye, often requiring a microscope for examination.

Plane of Section

A specific direction through a body or structure to expose a surface for study.

Sagittal

Pertaining to a plane that divides the body into right and left portions.

Internal Structures

The organs, bones, and other bodily elements that exist within the body and contribute to its complex functionality.