Ranger Pool Company received cash of $40,000 and issued common stock. Which of the following accounts will be credited?

Question

Quizplus · Accepted Answer

Common Stock will be credited as it represents the share capital contributed by the owners in exchange for equity in the company. Cash will be debited as an increase in cash has occurred. Accounts Receivable and Accounts Payable are unrelated to the transaction and not affected.

Ranger Pool Company Received Cash of $40,000 and Issued Common