Find the best answers to your questions at Westonci.ca, where experts and enthusiasts provide accurate, reliable information. Join our Q&A platform to get precise answers from experts in diverse fields and enhance your understanding. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
Cash is debited for increasing assets and credited for increasing stockholder equity by crediting common stock and paid-in capital.
Given,
Alma corp. issues 1,000 shares of $10 par common stock at $14 per share.
We have to find the credits made to when the transaction is journalized;
The journal entry is displayed below;
Cash; 1,000 shares at $14 = 1000 × 14 = $14,000
To Common Stock ; 1,000 shares at $10 = 1000 × 10 = 10,000
To Paid in capital in excess of par value; 3,000 shares at $4 = 14,000 - 10,000 = 4,000
Being documented as the common stock's issue
Here, cash is debited because it increased assets and credited because it increased stockholder equity by purchasing common shares and paying for capital.
Learn more about common stock here;
https://brainly.com/question/24215333
#SPJ4
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.
