Issuance of Capital Stock with Subscriptions
Timpview Company was incorporated on January 1, 2008, with the following authorized capitalization:
• 20,000 shares of common stock, stated value $5 per share
• 5,000 shares of 7% cumulative preferred stock, par value $15 per share
Make the entries required for each of the following transactions:
(a) Issued 12,000 shares of common stock for a total of $672,000 and 3,000 shares of preferred stock at $20 per share.
(b) Subscriptions were received for 2,500 shares of common stock at a price of $52. A 30% down payment is received.
(c) Collected the remaining amount owed on the stock subscriptions and issued the stock.
(d) Sold the remaining authorized shares of common stock at $61 per share.