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 $11,300B. Debiting Cash for $12,000 and Crediting Machinery for $11,300 and Common stock for $700C. 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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Description: 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. D

Given, Cash $12,000 Machinery $11,300 Common stock $23,300 We know that Assets are debited when…

Answered: Upon organizing the new business, one…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 3BE: Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected...

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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 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

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