Question

0:15:4/ Tanzae Jonnson: Attempt I Question 5 (1 point) Use this information to answer the following questions: 170 Property taxes payable 1100 Cash 1120 Short-term investments 1130 Notes receivable 140 Accounts receivable 1145 Loan receivable 1150 Interest receivable 1160 Other accrued receivables 1200 Inventory 2200 Long-term notes payable 100 Common stock 3200 Retained earnings 5000 Sales revenue 5300 Interest revenue 00 Cost of goods sold Advertising expense Miscellaneous expense Depreciation expense Insurance expense 1250 Supplie 200 210 1260 1320 d expenses Buildings and equipment (B&E) Accumulated depreciation-B&E 6220 6230 1325 2110 Short-term notes payable 6240 Property tax expense 120 Interest payable 130 Accounts payable 140 Deferred revenue 150 Salaries and wages payable 160 Dividends payable 250 Rent expense 260 Supplies expense 270 Salaries and wages expense 00 Interest expense 999 Income summary account Transaction Account(s) debited Account(s) credited Sold $110,000,000 in common stock for cash Using the chart of accounts provided, indicate by account number the account or accounts that would be credited in the above transaction. Previous Page Next Page Page 5 of 1 80 F3 Dll F5 F6

Answer 1

5)

Journal entry for sale of common stock:
Accounts title and explanation				Debit $	Credit $
Cash account DR				110,000,000
To Common Stock					110,000,000
(for sale of common stock)
Account credited = Common stock account (Account no. 3100)