Wilson Furniture Company received cash of $40,000 and issued common stock. Which of the following accounts will be debited?

Question

Quizplus · Accepted Answer

The account that will be debited is Cash since cash was received. Accounts Receivable would only be debited if the company received a promise to pay at a later date. Common Stock would be credited since it was issued. Accounts Payable would only be debited if the company paid off a debt.

Wilson Furniture Company Received Cash of $40,000 and Issued Common