Multiple Choice
Chao Xu starts a consulting business called Networkers.Xu invests $10,000 cash and $5,000 of equipment in Networkers in exchange for its common stock.How would Networkers record this transaction?
A) Cash increases by $10,000,Equipment increases by $5,000,and Consulting Revenue increases by $15,000.
B) Cash increases by $10,000,Equipment increases by $5,000,and Consulting Revenue decreases by $15,000.
C) Cash increases by $10,000,Equipment increases by $5,000,and Common Stock decreases by $15,000.
D) Cash increases by $10,000,Equipment increases by $5,000,and Common Stock increases by $15,000.
E) Cash increases by $10,000,Equipment decreases by $5,000,and Common Stock increases by $5,000.
Correct Answer:
Verified
Correct Answer:
Verified
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