Which of the following entries records the purchase of common stock by stockholders?

A) debit Common Stock; credit Accounts Receivable
B) debit Cash; credit Common Stock
C) debit Dividends; credit Cash
D) debit Fees Earned; credit Common Stock

Common Stock

A form of security signifying part ownership in a corporation, which entitles the owner to vote and receive a portion of the company's earnings via dividends.

Accounts Receivable

Refers to the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Dividends

Payments made by a corporation to its shareholders from the earnings of the company.