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Moses, Inc receives $50,000 in cash in exchange for ownership in their company. Which journal entry...

Moses, Inc receives $50,000 in cash in exchange for ownership in their company. Which journal entry should Moses, Inc. record?

Group of answer choices

a. DR: Revenue 50,000; CR: Stock 50,000

b. DR: Cash 50,000; CR: Stock 50,000

c. DR: Stock 50,000; CR: Cash 50,000

d. DR: Cash 50,000; CR: Revenue 50,000

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Answer #1

It is issue of stock for cash. The cash is received against issued stock hence cash need to be debited and stock need to be credited.

Correct option would be:

b. DR: Cash 50,000; CR: Stock 50,000

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