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    Michalyn's Avatar
    Michalyn Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 11, 2007, 01:39 PM
    Need quick help with Acct. 101 homework
    A friend of mine has a homework question she needs help with:

    How the heck to I post this?

    "Wells purchased 100 shares of Wells Consulting Services stock for $10,000"

    The only accounts I have to choose from are:
    Cash
    A/R
    Supplies
    A/P
    Capital Stock
    Retained Earnings
    Dividends
    Professional Fees
    Operating Expense
    Supplies Expense
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Jan 11, 2007, 08:34 PM
    Well, if you are buying 100 shares for $10,000 what are you doing?

    You are giving them an asset, cash in the amount of 10,000.

    In exchange you are receiving an asset, stock, valued at $10,000 (b/c that is what you paid for it).

    Dr. Capital Stock 10,000
    Cr. Cash 10,000
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