Problem - Righty, inc., entered into stock subscription contract that called for the purchase by investors of 15,000 shares of $ 12 par common stock at a price of $33 per share. The contract required a down payment of $ 15 per share, with the remaining $ 18 per share collectible at the end of three months.
Required:
a. Prepare the journal entry to record the stock subscription and down payment.
b. The subscribers paid the remainder at the end of three months. Prepare the journal entry to record the final payment and the issuance of the shares of stock.