Tyler Incorporated receives $150,000 from investors for issuing them shares of its common stock.Tyler Incorporated records this transaction with a:

Question

Quizplus · Accepted Answer

When Tyler Incorporated receives money from investors for issuing them shares of its common stock, it is a capital infusion into the company. This means that the company receives money in exchange for giving the investors a small piece of ownership in the company. The money received from the investors is recorded as common stock. Therefore, the correct entry will be a credit to common stock.

Tyler Incorporated Receives $150,000 from Investors for Issuing Them Shares