Answer:
Common stock and $100
Explanation:
The journal entry is shown below:
Cash Dr $500 (100 shares × $5)
To Common stock $100 (100 shares × $1)
To Additional paid in capital in excess of par value - common stock (100 shares × $4)
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and additional paid in capital as it increased the stockholder equity
Answer:
I'm figuring this out for you!
Explanation:
Answer: b
Under the accrual basis of accounting, expenses are matched with the revenues related to it and/or are reported when the expense occurs, and not just when the cash is paid. The company should record its earned revenue when services are rendered. Payment may come at a later date.
Answer:
$15,500
Explanation:
Whenever there is a movement in cash over a given period, it is usually as a result of receipts and disbursement over the period and can be denoted as;
Opening balance + Receipts - Disbursements = Closing balance.
However, if the company intends to maintain closing balance, the amount to be borrowed would form part of the receipts.
$18,500 + receipts - $189,000 = $30,500
Receipts = $30,500 + $189,000 - $18,500
Receipts = $201,000
Given budgeted cash receipts, totalled $185,500, then amount to borrow
= $201,000 - $185,500
= $15,500
