Why do I credit common stock instead of debiting it in this situation?
Aaron Jones (owner) invested the following assets in the business: cash: $6500; supplies: $1250, and office equipment: $10,000. Mr Jones recieved common stock in an amount equal to his investment.
Make a journal entry for this day___
I originally debited cash, supplies, office equipment AND common stock (because common stock goes up)
But I was told by someone else that Im supposed to credit common stock. Why is this?
if thats true do the same rules apply for accounts payable, & fees earned?
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