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Three former college classmates have decided to pool a variety of work experienc

ID: 2374151 • Letter: T

Question


Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.

Transaction 1

On March 1, two former classmates invested a total of $30,000 in cash in exchange for 1,000 shares of stock each.

Account:                Dollar amount:   

Account:
              Dollar amount:   

Account:
            Dollar amount:

Account:
                  Dollar amount:
  

Account:              Dollar amount:   

For account parts, you should choose from options below:

Cash,
Accounts Receivable,
Inventory,
Prepaid Rent,
Fixtures and equipments,

Accounts Payable,
Interest Payable,
Wages Payable,
Notes Payable,
Paid-in Capital,
Retained Earnings,
Leave Bank






Explanation / Answer

Transaction 1
On March 1, two former classmates invested a total of $30,000 in cash in exchange for 1,000 shares of stock each.

Account:Cash                Dollar amount:$ 30000   

Account:Paid in capital
   Dollar amount:$ 30000   

Cash A/c Dr. 30000

To Paid in capital A/c(2000 share @ 15) 30000