213k views
5 votes
What journal entry is recorded as a result of issuing stock to investors for cash?

User Okhobb
by
5.8k points

1 Answer

4 votes
I believe this would result to a debit to cash and a credit to common stock. This is because the transaction would result to an increase in cash (asset) and a decrease in stock (asset). A journal is a record used in accounting in which transactions are initially recorded in order of when they were undertaken.
User Eryrewy
by
6.1k points