1. Candace Flynn opens a bank account in the name of Candace Domestic Spying, Inc. in the amount of $50,000 and receives common stock.

1. debit dividends 50,000, credit common stock 50,000
2. debit common stock 50,000, credit cash 50,000
3. debit accounts receivable 50,000, credit common stock 50,000
4. debit cash 50,000, credit common stock 50,000
5. no journal entry required

4. Candace Inc. buys $6,100 of surveillance equipment and will pay for it all later.

1. debit equipment expense 6,100, credit accounts receivable 6,100
2. debit equipment 6,100, credit accounts payable 6,100
3. debit equipment 6,100, credit cash 6,100
4. debit equipment expense 6,100, credit cash 5,000,

credit accounts payable 2,100

5. Major Monogram, an expert in improving the resolution of spy videos, performs services for Candace Inc. and bills the firm $999.

1. debit cash 999, credit expense 999
2. debit expense 999, credit accounts payable 999
3. debit accounts payable 999, credit cash 999
4. debit accounts payable 999, credit expense 999
5. none of the above

6. The firm pays Major Monogram $111 from the event described in #5 above.

1. debit cash 111, credit accounts payable 111
2. debit cash 111, credit accounts receivable 111
3. debit investigation expense 111, credit cash 111
4. debit accounts receivable 111, credit cash 111
5. debit accounts payable 111, credit cash 111