On March 1, the three classmates opened a checking account for the company at a local bank. They each deposited $20,000 in exchange for shares of stock. A few of their friends also purchased stock totaling $10,000 that was deposited in the company account. Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account:

Question

Catalina Hensley

Business

10 December, 18:40

On March 1, the three classmates opened a checking account for the company at a local bank. They each deposited $20,000 in exchange for shares of stock. A few of their friends also purchased stock totaling $10,000 that was deposited in the company account. Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account:

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Boo Bear · Answer 1

Account: Cash Account Dollar amount: $70,000

Account: Paid-in capital Dollar amount: $70,000

The amount is shown below:

= Deposit amount * number of classmates + purchase of stock

= $20,000 * 3 + $10,000

= $60,000 + $10,000

= $70,000

Only this two account is required i. e cash account and the paid-in capital account