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On 1 August XYZ Ltd Issued $240 000 Shares to Shareholders

Question 10

Multiple Choice

On 1 August XYZ Ltd issued $240 000 shares to shareholders in exchange for cash of $100 000 and land of $140 000. This transaction would be recorded in the general ledger as:


A) a debit to cash and land and a credit to share capital.
B) a credit to cash and land and a debit to share capital.
C) an increase to cash and land and a decrease to share capital.
D) a decrease to cash, and an increase to land and share capital.

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