Which of the Following Journal Entries Would Be Recorded If $$\begin{array} { | c | r | r | } \hline \text { Cash } & 3,000 & \\\hline \text { Common Stock } & & 3,000 \\\hline\end{array}$$

question 114

Multiple Choice

Which of the following journal entries would be recorded if Christy Jones Inc.issued stock to the public and received $3000?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 3,000 & \\
• \hline \text { Common Stock } & & 3,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 3,000 & \\
• \hline \text { Cash } & & 3,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Common Stock } & 3,000 & \\
• \hline \text { Cash } & & 3,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Common Stock } & 3,000 & \\
• \hline \text { Accounts Payable } & & 3,000 \\
• \hline
• \end{array}\]

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Definitions:

Cost Drivers

Factors that cause the cost of an activity or process to change, used in strategic management to control and reduce costs.

Volume

The quantity of something, often used to refer to the total amount of stocks or contracts traded in a financial market.

Departmental Overhead Rate

A rate used to allocate indirect costs to products or services, calculated separately for each department within an organization.

Mixing Department

A section within a manufacturing facility where raw materials are combined or processed together to create a product or a component of a product.