Question

Record the sale of common stock on 1/26/23 to shareholders (a new vendor) receiving a $10,000 check that was immediately deposited ($100 common stock $9,900 paid-in capital).

Answer 1

On 1/26/23, a sale of common stock to shareholders resulted in a receipt of a $10,000 check being immediately deposited ($100 common stock, $9,900 paid-in capital). This transaction helps to finance the company's operations and investments.

Step-by-step explanation:

On 1/26/23, the sale of common stock to shareholders resulted in the receipt of a $10,000 check, which was immediately deposited. The breakdown of this transaction is as follows:

• $100 for common stock
• $9,900 for paid-in capital

The sale of common stock represents an increase in the company's equity and a way for the company to raise capital. The common stock represents the ownership interest of the shareholders and the paid-in capital is the amount received from the shareholders for the stock. This transaction helps to finance the company's operations and investments.