Mayfair Corporation was organized on October 1, 2020. Mayfair Corporation received a total of $250,000 from the owners on that date. The following entry should be recorded: Group of answer choices a)A debit to cash for $250,000 and a credit to revenue for $250,000. b)A credit to cash for $250,000 and a debit to retained earnings for $250,000. c)A credit to cash for $250,000 and a debit to contributed capital for $250,000. d)A debit to cash for $250,000 and a credit to dividends payable for $250,000. e)None of the above

Mayfair Corporation was organized on October 1, 2020. Mayfair Corporation received a total of $250,000 from the owners on that date. The following entry should be recorded: Group of answer choices a)A debit to cash for $250,000 and a credit to revenue for $250,000. b)A credit to cash for $250,000 and a debit to retained earnings for $250,000. c)A credit to cash for $250,000 and a debit to contributed capital for $250,000. d)A debit to cash for $250,000 and a credit to dividends payable for $250,000. e)None of the above

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

Mayfair Corporation was organized on October 1, 2020. Mayfair Corporation received a total of $250,000 from the owners on that date. The following entry should be recorded:

Group of answer choices

a)A debit to cash for $250,000 and a credit to revenue for $250,000.

b)A credit to cash for $250,000 and a debit to retained earnings for $250,000.

c)A credit to cash for $250,000 and a debit to contributed capital for $250,000.

d)A debit to cash for $250,000 and a credit to dividends payable for $250,000.

e)None of the above

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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