Asked by Beverly Chafton on Jun 11, 2024
Verified
An owner transfers a personal automobile to the company with a fair market value of $12,000. The entry will be made in the
A) purchases journal
B) cash payments journal
C) cash receipts journal
D) general journal
Fair Market Value
The price at which an asset would sell in the marketplace given willing, informed, and unpressured buyers and sellers.
Transfers
Movements of funds or resources from one account to another within an organization or between organizations.
Purchases Journal
A financial record keeping system that tracks all purchases of merchandise, supplies, or other assets on credit.
- Acquire knowledge of the processes used for logging transactions in special and general journals.
Verified Answer
MH
Megan HuynhJun 16, 2024
Final Answer :
D
Explanation :
Transferring a personal automobile to a company is not a transaction that would typically be recorded in any of the specialized journals such as purchases, cash payments, or cash receipts. Instead, it would be recorded in the general journal, which is used for all other types of transactions that don't fit into the other journals.
Learning Objectives
- Acquire knowledge of the processes used for logging transactions in special and general journals.