Ask Question
BusinessBusiness
12 July, 01:22

On Jan. 2, Callie Taylor invests $40,000 into the business in exchange for common stock. She journalize the transaction as follows but something is wrong with the journal entry. Use your knowledge of what a correct journal entry should look like to identify everything that is wrong.

+2
Answers (1)
  1. 12 July, 01:51
    0
    See explanation section.

    Explanation:

    The correct journal to record this transaction is -

    Cash Debit $40,000

    Common stock Credit $40,000

    Note: As Callie Taylor invests the amount in exchange for common stock, An asset (cash) will be increased, and equity (common stock) will be increased. An increase in asset means debit, while an increase in equity means credit.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On Jan. 2, Callie Taylor invests $40,000 into the business in exchange for common stock. She journalize the transaction as follows but ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A chocolatier produces truffles and sells each 1 pound box of truffles for $20. However, the chocolatier knows that some consumers would be willing to pay more than the cost of the chocolate, but less than $20 per pound, and wishes to sell truffles
Answers (1)
What is a check written by a bank on its own funds called?
Answers (1)
During the current year, the company had the following summarized activities: Purchased short-term investments for $10,000 cash. Lent $5,000 to a supplier, who signed a two-year note.
Answers (1)
The government increases taxes. What might be a reason for this change in fiscal policy? A deficit due to improving nationwide public transportation A deficit due to more monies flowing in from investors A surplus due to greater amounts of income
Answers (1)
Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost $8.00, annual demand of 40000, and ordering cost of $48.
Answers (1)
New Questions in Business
Trueview video ads can be especially effective for driving what goals?
Answers (1)
There are three factors that can affect the shape of the Treasury yield curve (r*t, IP_t, and MRP_t) and five factors that can affect the shape of the corporate yield curve (r*t, IP_t, MRPt, DRP_t, and LP_t).
Answers (1)
Alyson is an employee at Who'd of Thunk It Games, a company that was just purchased by a competitor. The goals set forth by the new management team are extremely ambitious and are placing seemingly insurmountable goals for the employees.
Answers (1)
Making any misleading representations or incomplete or fraudulent comparison of any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, or convert any
Answers (1)
Once risks have been identified, how can they be managed?
Answers (1)
Home » Business » On Jan. 2, Callie Taylor invests $40,000 into the business in exchange for common stock. She journalize the transaction as follows but something is wrong with the journal entry.
Sign Up Forgot Password?