Question
Daffy Duct, Inc., issued 100,000 shares of no-par common stock at $5 per share. The bookkeeper, recorded the transaction with a $500,000 debit to Cash
Daffy Duct, Inc., issued 100,000 shares of no-par common stock at $5 per share. The bookkeeper, recorded the transaction with a $500,000 debit to Cash and credit to Common Stock. Which of the following is true?
| Common Stock will be overstated. | ||
| Total shareholders' equity is overstated. | ||
| Total assets are understated. | ||
| This entry is correct |
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Management And Cost Accounting
Authors: Charles T. Horngren (Author), Alnoor Bhimani (Author), Srikant M. Datar (Author), George Foster
2nd Edition
0273651838, 978-0273651833
