A balance sheet is a financial statement that lists the accounts and balances of a business entity’s assets, liabilities and shareholders’ equity. A business entity reports such financial information in its balance sheet at the end of an accounting period, providing a snapshot of its financial condition at that point in time.
Answer: Private goods.
Explanation:
Private goods are commodities bought by a consumer for personal consumption. It is very easy to determine the cost of private goods as the cost is the price at which it is sold in the market. On the other hand public goods are commodities that everyone enjoys in society that are not necessarily paid for by consumers. Therefore to determine the final cost of public goods is difficult to ascertain.
Answer and Explanation:
The journal entry for issuance of the shares is as follows:
Cash Dr (5,000 × $15) $75,000
To Common stock(5,000 × $1) $5,000
To Additional paid in capital $70,000
(being the issuance of the shares is recorded)
Here the cash is debited as it increased the assets and credited the common stock and additional paid in capital as it increased the equity
