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

Question

Quizplus · Accepted Answer

When a company receives money from investors in exchange for shares of its common stock, it records the transaction with a credit to the Common Stock account. This increases the Common Stock balance on the balance sheet and reflects the amount of money the company has received from investors in exchange for ownership in the company.

Tyler Incorporated Receives $150,000 from Investors in Exchange for Shares