Question

Journalize the transactions for the stock subscription plan for Sysco Company. On February 1, Sysco received subscriptions for 50 shares of $10 par value common stock at $14 per share. The buyer will pay two equal installments on March 1 and June 1. Assume all payments are made as scheduled and the company issues the stock after the June 1 collection.

Answer 1

In the books of Sysco Company
Jounal Entries
Date	Account Title and explanation	Debit	Credit
Feb-01	Stock subscription receivable(50 X $ 14)	$        700
	Common Stock Subscribed (50 X $ 10)		$        500
	Additional paid in capital (50 X $ 4)		$        200
	( Being 50 shares subscribed at premium accounted )
Mar-01	Cash	$        350
	Stock subscription receivable(50 X $ 7)		$        350
	( Being first installment received of stock subscription)
Jun-01	Cash	$        350
	Stock subscription receivable(50 X $ 7)		$        350
	( Being second installment received of stock subscription)
Jun-01	Common Stock Subscribed (50 X $ 10)	$        500
	Common Stock		$        500
	(Being Subscribed common stock issued to stockholders)

Answer 2

To journalize the transactions for the stock subscription plan for Sysco Company, we'll record the relevant entries on the specified dates. Here are the journal entries:

1. On February 1: Subscription Receivable (50 shares * $14) 700 Common Stock Subscribed (50 shares * $10 par) 500 Additional Paid-in Capital 200 (To record the subscriptions received for 50 shares of common stock)

2. On March 1: Cash (50 shares * $14 * 0.5 installment) 350 Subscription Receivable 350 (To record the receipt of the first installment)

3. On June 1: Cash (50 shares * $14 * 0.5 installment) 350 Subscription Receivable 350 (To record the receipt of the second installment)

4. On June 1: Subscription Receivable 700 Common Stock Subscribed (50 shares * $10 par) 500 Additional Paid-in Capital 200 (To record the issuance of the subscribed common stock after the June 1 collection)

Please note that the values used in the journal entries are based on the given information. Adjustments may be necessary based on additional details or specific accounting policies of Sysco Company.