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Issuing Common Stock for Assets or Services
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Problem 10
Issuing Common Stock for Assets or Services
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12. Stockholders' Equity / Issuing Common Stock for Assets or Services / Problem 10
Problem 10
What is a key difference in the journal entry when issuing common stock for assets versus cash?
A
There is no difference; both entries are identical.
B
The debit is to an asset account instead of a cash account.
C
The debit is to a liability account instead of an asset account.
D
The credit is to a liability account instead of a common stock account.
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