Laurie Dexter Starts a Business Called Camden Cleaning

Laurie Dexter starts a business called Camden Cleaning.Dexter invests $10,000 cash in Camden in exchange for its common stock.How would Camden record this transaction?

A) Cash increases by $10,000 and Cleaning Revenue increases by $10,000.
B) Cash decreases by $10,000 and Cleaning Revenue increases by $10,000.
C) Cash increases by $10,000 and Common Stock increases by $10,000.
D) Cash increases by $10,000 and Common Stock decreases by $10,000.
E) Cash decreases by $10,000 and Cleaning Expense increases by $10,000.

Correct Answer:

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