- Z Best Inc Issued 1 000 000 Of Stock For Cash Z Best Recorded The Transaction By Increasing Cash And Decreasing Comm 1 (69.01 KiB) Viewed 38 times
Z Best, Inc. issued $1,000,000 of stock for cash. Z Best recorded the transaction by increasing cash and decreasing common stock and actional pald-in capital. As a result of this entry. (Check all that apply.) contributed capital is understated labilities are understated Reason: Assets and liabilities are correctly stated. Stockholders' equity is understated since it should have been increased, not decreased. the accounting equation is out of balance stockholders' equity is understated assets are understated Reason: Assets are correctly stated. Stockholders' equity is understated since it should have been increased, not decreased, Correct Answer contributed capital is understated the accounting equation is out of balance stockholders' equity is understated