Alex invested $30,000 in cash in his business. How will this entry be posted in the ledger accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) The $30,000 will be posted to the credit side of the Cash account. The $30,000 will be posted to the debit side of the Cash account. The $30,000 will be posted to the debit side of the Common Stock account. The $30,000 will be posted to the credit side of the Common Stock account.

Question

Business

Lauren Mack

25 August, 06:27

Alex invested $30,000 in cash in his business. How will this entry be posted in the ledger accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) The $30,000 will be posted to the credit side of the Cash account. The $30,000 will be posted to the debit side of the Cash account. The $30,000 will be posted to the debit side of the Common Stock account. The $30,000 will be posted to the credit side of the Common Stock account.

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Answers (1)

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Erica Black · Answer 1

The $30,000 will be posted to the debit side of the Cash account

The $30,000 will be posted to the credit side of the Common Stock account

Explanation:

The journal entry is shown below:

Cash A/c Dr $30,000

To Common stock A/c $30,000

(Being the cash is invested)

We simply debited the cash account and credited the capital account for $30,000 so that the correct posting can be done. So while preparing the ledger accounts we post the amount to the debit side of the cash account and credit side of the common stock account