Reference no: EM132472700

Question 1: 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)

1. The dollar amount is wrong in the Credit column
2. Common Stock should be listed below Cash
3. The Cash account should be listed first
4. The Common Stock account should be indented as it is credited $ signs should be included in the Debit and Credit columns