Question 1
Boston Foods Inc. accepted subscriptions for 62,000 no par value common shares on March 31, 2023 when the shares were selling for $30. A 55% down payment was received with the remainder due in six months. On September 30, the balance of the subscription price is received and the shares are issued.
Instructions
(a) Prepare the journal entry(ies) for Boston Foods Inc. for March 31, 2023.
(b) Prepare the journal entry(ies) for Boston Foods Inc Inc. for September 30, 2023.
(c) Assume that on September 30, 2023, subscriptions for 5,000 shares were defaulted. If a default on a subscription occurs, the policy of Boston is to treat the amounts paid as forfeited. Prepare the journal entry(ies) at September 30, 2023 under this assumption.
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