ABC Corporation issued common stock to its investors for $125,000.The journal entry to record this transaction includes a(n)________.

Question

Quizplus · Accepted Answer

The issuance of common stock involves raising capital by selling ownership stakes in the company to investors. The journal entry to record this transaction includes a credit to Common Stock, as this represents the value of the stock being issued. There is no debit to Investments, Revenue or Expense in this scenario.

ABC Corporation Issued Common Stock to Its Investors for $125,000