On 1/1X1, Trump Company owned all 100,000 shares of Swamp Company when Swamp's Shareholders' Equity...
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Accounting
On 1/1X1, Trump Company owned all 100,000 shares of Swamp Company when Swamp's Shareholders' Equity was as follows:
Capital Stock: $1 par
100,000
Additional Paid In Capital
200,000
Retained Earnings
400,000
Total Equity
700,000
On 1/2/X1, Swamp issued 10,000 additional shares for $8 each, but Trump did not purchase any of the shares. After Swamp's stock issue, Trump should make which of the following accounting entries
Select one:
a. Debit Investment in Swamp for $80,000 and Credit Gain for $80,000
b. Debit Investment in Swamp for $80,000 and Credit P's Capital for $80,000
c. Debit Investment in Swamp for $9,091 and Credit P's Capital for $9,091
d. Debit Investment in Swamp for $9,091 and Credit Gain for $9,091
e. None of the Above
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