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Westkost [7]
3 years ago
15

When cash is received from a stockholder in exchange for common stock, the transaction is recorded by debiting Cash and creditin

g a(n): Multiple Choice
Business
1 answer:
MariettaO [177]3 years ago
5 0

Answer:

Equity account

Explanation:

In the case when the cash is received in exchange of the common stock so here the cash is debited and credited the common stock i.e. equity account

The journal entry is

Cash Dr XXXXX

    To Common stock XXXXX

(Being exchange is recorded)

here cash is debited as it increased the assets and credited the common stock as it also increased the equity

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D. project manager
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2 years ago
Tim Company had sales of $30,000, increase in accounts payable of $5,000, decrease in accounts receivable of $1,000, increase in
ipn [44]

Answer:

$31,000

Explanation:

decrease in accounts receivable = $1,000

Sales = $30,000

Cash collected from customers = Sales plus decrease in accounts receivables

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                                                    = $31,000

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