Lorella entered into a common share subscription contract for 1,000 shares at a subscription price of $20.She paid 20% of the total price as a down payment and also paid the next two 20% instalments (she paid 60% in all).Lorella then defaulted on the contract and refused to pay any more.Assuming the company must issue shares in proportion to the cash paid, the entry to record the default would include:
A)dr.common shares subscribed $20,000
B)dr.common shares subscribed $12,000
C)dr.subscriptions receivable $8,000
D)dr.common shares $12,000

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The Answer of Lorella entered into a common share subscription contract for 1,000 shares at a subscription price of $20.She paid 20% of the total price as a down payment and also paid the next two 20% instalments (she paid 60% in all).Lorella then defaulted on the contract and refused to pay any more.Assuming the company must issue shares in proportion to the cash paid, the entry to record the default would include:
A)dr.common shares subscribed $20,000
B)dr.common shares subscribed $12,000
C)dr.subscriptions receivable $8,000
D)dr.common shares $12,000

Lorella Entered into a Common Share Subscription Contract for 1,000