Answered: Mary Henderson invested $45,000 cash in…

Business

Accounting

Mary Henderson invested $45,000 cash in the company in exchange for its common stock.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Mary Henderson invested $45,000 cash in the company in exchange for its common stock.

Expert Solution

Explanation -

Common Stock -

Common Stock is the shares issued to the public in exchange of Cash. This denotes initial investment raised by the company. This should be recorded in the Stockholder's Equity.

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