Upon organizing the new business, one of the owners invested Cash of $12,000 and Machinery valued at $11,300 receiving Common stock in exchange for those assets. The journal entry the business will make to record this transaction should include: A. Debiting Common stock for $23,300 and Crediting Cash for $12,000 and Machinery for $11,300 B. Debiting Cash for $12,000 and Crediting Machinery for $11,300 and Common stock for $700 C. Debiting Cash for $12,000 and Machinery for $11,300 and Crediting Common stock for $23,300. D. Debiting Machinery for $11,300 and Common stock for $700 and Crediting Cash for $12,000
Upon organizing the new business, one of the owners invested Cash of $12,000 and Machinery valued at $11,300 receiving Common stock in exchange for those assets. The journal entry the business will make to record this transaction should include: A. Debiting Common stock for $23,300 and Crediting Cash for $12,000 and Machinery for $11,300 B. Debiting Cash for $12,000 and Crediting Machinery for $11,300 and Common stock for $700 C. Debiting Cash for $12,000 and Machinery for $11,300 and Crediting Common stock for $23,300. D. Debiting Machinery for $11,300 and Common stock for $700 and Crediting Cash for $12,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Upon organizing the new business, one of the owners invested Cash of $12,000 and Machinery valued at $11,300 receiving Common stock in exchange for those assets. The
- A. Debiting Common stock for $23,300 and Crediting Cash for $12,000 and Machinery for $11,300
- B. Debiting Cash for $12,000 and Crediting Machinery for $11,300 and Common stock for $700
- C. Debiting Cash for $12,000 and Machinery for $11,300 and Crediting Common stock for $23,300.
- D. Debiting Machinery for $11,300 and Common stock for $700 and Crediting Cash for $12,000
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