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The Appropriate Journal Entry to Record the Cash Collected from Applicants

Question 7

Multiple Choice

The appropriate journal entry to record the cash collected from applicants for shares before the shares are issued is:


A) Increase Cash account: Increase Issued Share Capital account
B) Increase Application account: Decrease Issued Share Capital account
C) Increase Issued Share Capital account: Decrease Cash Trust account
D) Increase Cash Trust account: Increase Application account.

Correct Answer:

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