what-is-a-key-difference-in-the-journal-entry-when-issuing-common-stock-for-asse

Question

What is a key difference in the journal entry when issuing common stock for assets versus cash?

Accepted Answer

The debit is to an asset account instead of a cash account.

Answer

There is no difference; both entries are identical.

Answer

The debit is to a liability account instead of an asset account.

Answer

The credit is to a liability account instead of a common stock account.