Scott, Inc. sold $65,000 of stock. How would this transaction be entered in the journal?
A) Cash 65,000 Capital Stock 65,000
Sold stock for cash.
B) Cash 65,000 Capital Stock 65,000
Sold stock for cash
C) Capital Stock 65,000 Cash 65,000
Sold stock for cash .
D) Capital Stock 65,000 Cash 65,000
Sold stock for cash.

Question

Quizplus · Accepted Answer

The correct entry is to debit Cash for $65,000 and credit Capital Stock for $65,000. This is because the company received cash in exchange for issuing stock.