A company receives $100,000 cash from investors in exchange for stock. Several weeks later, the company buys a $250,000 machine using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are:

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The first transaction involves receiving cash from investors in exchange for stock, which is recorded as Contributed Capital. The second transaction involves using the cash to purchase a machine, which is recorded as Equipment. Since the company did not have enough cash to pay for the entire machine, they signed a promissory note for the remainder, which is recorded as Notes Payable. Therefore, the appropriate accounts involved in these two transactions are Contributed Capital, Cash, Equipment, and Notes Payable.

A Company Receives $100,000 Cash from Investors in Exchange for Stock