Cyclopedia of Commerce, Accountancy, Business Administration, v. 04 (of 10)
2. _A_, _B_, and _C_ organize a corporation with an authorized
capitalization of $100,000.00, divided into 1,000 shares of $100.00
each. _A_ subscribes for 400 shares, _B_, 300 shares, and _C_,
200 shares. The corporation buys from _D_ land and buildings for
$20,000.00, paying him $10,000.00 in cash and issuing to him 100 shares
of stock.
Subscriptions are paid as follows: _A_ pays $20,000.00 cash and gives
his note due in 60 days for $20,000.00; _B_ pays $20,000.00 cash and
gives his note for $10,000.00 payable in 30 days; _C_ pays $10,000.00
cash and gives his note for $10,000.00 payable in 10 days.
Make all entries in journal and cash book and post to ledger.
NOTE.--Land and buildings are grouped under the head of real estate.