Question

0:16:21 Tahzae Johnson: Attempt 1 uestion 4 (1 point) Use this information to answer the following questions: 1100 Cash 1120 Short-term investments 1130 Notes receivable 2170 Property taxes payable 2180 Rent payable 2200 Long-term notes payable 100 Common stock 1140 Accounts receivable 1 145 Loan receivable 1150 Interest receivable 1160 Other accrued receivables 1200 Inventory 1250 1260 1320 Buildings and equipment (B&E) 1325 Accumulated depreciation-B&E 2110 Short-term notes payable 200 Retained earnings 5000 Sales revenue 5300 Interest revenue 6000 Cost of goods sold 6200 Advertising expense 210 Miscellaneous expense 6220 Depreciation expense 6230 Insurance expense 6240 Property t 250 Rent expense 5260 Supplies expense lies d expenses ax expense 120 Interest payable 130 2140 Deferred revenue ts payable 270 Salaries and wages expense 2150 Salaries and wages payable400 2160 Dividends payable Interest expense Income summary accoun 6999 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 debited in the above transaction. Previous Page Next Page Page 4 of 80 F3 F4

Answer 1

v

Journal entry for sale of common stock:
Accounts title and explanation				Debit $	Credit $
Cash account				110,000,000
Common Stock					110,000,000
(for sale of common stock)
Thus,
Account debited = Cash account (Account no. 1100)