Question

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:

Answer 1

Step-by-step explanation:

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