Jet Corporation was organized on March 1,20B.Jet Corporation issued shares to each of the six owners who paid in a total of $3,000 cash.On the basis of transaction analysis,the following entry should be recorded in the accounts (dr = debit and cr = credit)

Question

Quizplus · Accepted Answer

The entry to record the issuance of shares would include a debit to Cash for the amount received, and a credit to Share Capital for the same amount. Therefore, the correct entry is:

Cash (dr) $3,000 
Share Capital (cr) $3,000

Option A is not correct because revenue is not earned through the issuance of shares. 
Option B is not correct because shareholders’ equity is a broader category that includes Share Capital and other items, and it is not specific enough for this transaction. 
Option D is not correct because Share Capital should be credited, not debited.

Jet Corporation Was Organized on March 1,20B