What is the journal entry for a $10,000 deposit in exchange for $10,000 worth of common stock ?

Would I name that account common stock or cash ?

Thanks!

To record a $10,000 deposit in exchange for $10,000 worth of common stock, you would need to create a journal entry. Here's how you can do it:

1. Identify the accounts involved: In this case, the accounts are "Common Stock" and "Cash."

2. Determine the entry type: When you deposit cash in exchange for common stock, you are increasing the common stock account and decreasing the cash account. Therefore, it is a debit to the Common Stock and a credit to the Cash account.

3. Record the journal entry: You would record the journal entry as follows:

Entry: Debit Common Stock (increase) and Credit Cash (decrease)

Common Stock: $10,000 (debit)
Cash: $10,000 (credit)

By doing this, you are acknowledging that the company received $10,000 from the stockholder and, in return, issued $10,000 worth of common stock.

Regarding your question about the account name, in this case, you would name the account "Common Stock." The "Cash" account represents the cash being received in the transaction, while "Common Stock" represents the value of the stock being issued in exchange for the cash.

I hope this explanation helps! Let me know if you have any further questions.