Christine Invested $32,000 in Her Business, Cuts by Christine

question 52

Multiple Choice

Christine invested $32,000 in her business, Cuts by Christine. The journal entry would include a:

• A)debit to Cash for $32,000 and a credit to Sales for $32,000.
• B)debit to Cash for $32,000 and a credit to Common Stock for $32,000.
• C)credit to Cash for $32,000 and a debit to Common Stock for $32,000.
• D)debit to Cash for $32,000 and a credit to Dividends for $32,000.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares of the company's stock, rather than cash.

Market Value

The current value of an asset or company based on the price at which it can be sold in the marketplace.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a claim on profits.

Stock Dividend

A payment made in the form of additional shares rather than cash, reflecting a company's dedication to reinvesting in its growth.