An owner transfers a personal automobile to the company with a fair market value of $12,000. The entry will be made in the
A) purchases journal
B) cash payments journal
C) cash receipts journal
D) general journal

Question

Quizplus · Accepted Answer

Transferring a personal automobile to a company is not a transaction that would typically be recorded in any of the specialized journals such as purchases, cash payments, or cash receipts. Instead, it would be recorded in the general journal, which is used for all other types of transactions that don't fit into the other journals.

An Owner Transfers a Personal Automobile to the Company with a Fair