Using the Following Accounts

question 69

Multiple Choice

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Received first installment on common stock subscription.
Debit ________ Credit ________

• A)Subscription receivable-common stock
• B)Cash
• C)Machinery
• D)Building
• E)Land
• F)Organization costs
• G)Preferred stock
• H)Common stock
• I)Paid in capital in excess of par value - common
• J)Paid in capital in excess of par value - preferred
• K)Common stock subscribed
• L)Discount on common stock
• M)Organization Expense

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Definitions:

Department of External Affairs

An historical term used for the government department in some countries responsible for foreign relations and diplomacy, now often referred to as the Ministry of Foreign Affairs.

Trade Missions

Official trips organized by governments or trade associations aimed at exploring international business opportunities and fostering economic relations.

Loan Guarantees

Financial guarantees provided by a third party (like a government or financial institution) ensuring loan repayment in case the borrower defaults.

Export Development Corporation

An organization that offers financial services, insurance, and support to companies exporting goods and services from their home country.