Quiz 1 Answer Key Summer 2010

Quiz 1 Answer Key Summer 2010 - Acct 203 Summer 2010 Paul...

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Acct 203 Summer 2010 Quiz #1 Paul Harley Total Time: 15 min 1. Company A was formed on 1/1/2009. The founding investors put $100,000 of cash into the new business and received shares of common stock in Company A. What journal entry does Company A record in its general ledger on 1/1/2009? a. Dr. Cash $100,000 and Cr. Retained Earnings $100,000 b. Dr. Common Stock $100,000 and Cr. Cash $100,000 c. Dr. Cash $100,000 and Cr. Common Stock $100,000 d. No entry to record since the cash came from owners. e. None of the above. Answer C Asset Cash increases by $100,000 using a debit and equity account common stock is credited since it reflects the ownership interest purchased by the investors in Company A. 2. On 2/15/2009, Company A ordered a new computer system from Dell Computer for a total cost of $25,000 payable in cash to Dell 30 days after delivery of the computer system to Company A. What is the journal entry that Company A records on 2/15/2009? a.
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This note was uploaded on 02/01/2011 for the course ACCT 203 taught by Professor Hylton during the Summer '08 term at George Mason.

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Quiz 1 Answer Key Summer 2010 - Acct 203 Summer 2010 Paul...

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