Using the Following Accounts

question 99

Multiple Choice

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Exchanged common stock for services of corporation organizers (valued at par) .
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:

Authorized Credit Limit

The maximum amount of credit that a financial institution permits a borrower to use under a line of credit.

Credit Card Charged

A financial transaction where a credit card holder authorizes the transfer of funds from their account to a merchant for payment of goods or services.

Tangible Property

Physical assets that can be seen, touched, and valued, such as real estate, equipment, and goods.

iPhone

A line of smartphones designed and marketed by Apple Inc., featuring a multi-touch interface, cellular connectivity, and a variety of applications.