question 9

QUESTIONS Molsen Corporation begins operations on March 1, 2014 and records the following 7 transactions during the month. 1. March 1, 2014. The company issues 10,000 shares of $10 par value common stock for $100,000 cash. 2. March 5, 2014. The company purchases equipment costing $60,000 for cash, 3. March 15, 2014. The company purchases merchandise costing $15,000 from a supplier on account 4. March 21, 2014. The company pays $8,000 in cash of the amount due to the supplier in transaction #3. S. March 21, 2014. The supplier in transaction #3 accepts 700 shares of common stock at par value in settlement of the $7,000 amount owed. 6. March 31, 2014. The company pays $600 for a one-year insurance policy. The insurance coverage will begin on April 1, 2014 7. March 31, 2014. The company receives $3,000 from a customer for merchandise to be delivered during April What is the debit and credit for transaction #5? a. Debit accounts payable for $7,000 and credit Inventory for $7,000. O b. Debit accounts payable for $7,000 and credit common stock for $7,000, O c. Debit accounts payable for $7,000 and credit cost of goods sold for $7,000. O d. Debit cost of goods sold for $7,000 and credit common stock for $7,000