On Jan. 2, Callie Taylor invests $40,000 into the business in exchange for common stock. She journalized the transaction as follows but something is wrong with the journal entry. Use your knowledge of what a correct journal entry should look like to identify everything that is wrong. Select all answers which apply.
Date
Accounts
PR
Debit
Credit
Jan 2
Common Stock
40,000
Cash
4,000
(Owner invested in business)
The dollar amount is wrong in the Credit column
Common Stock should be listed below Cash
The Cash account should be listed first
The Common Stock account should be indented as it is credited
$ signs should be included in the Debit and Credit columns
Answers: 1
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