i need help with question. this is a practice question. I not just indicate that and I will move on : I selected b is that correct i think it maybe d

The following activity occurred during May 2016 for ABC Inc.:

Date

Description

May 1

Owner invested $145,000 in cash in exchange for 1,000 shares of $1 par common stock.

May 4

Company sold $5,000 worth of goods. Customer paid half cash and half on account. The merchandise sold had a cost to the company of $3,500.

May 6

Accepted $500 of advance payments from customers for services to be provided next month.

May 27

Received a utility bill for $450. Payment is due in 30 days. The company decides to wait exactly 30 days to pay.

May 29

Mr. Jones paid in full the outstanding debt he had with the company.

May 31

The company declares a stock split.

Using the information above, what journal entry would be required to record the transaction of May 1?

Select one:

a.Common Stock, Par

1,000Common Stock, Additional Paid in Capital

144,000Cash

145,000

b.Cash

145,000Common Stock, Par

145,000

c.Cash

145,000Common Stock, Additional Paid in Capital

145,000

d.Cash

145,000Common Stock, Par

1,000Common Stock, Additional Paid in Capital

144,000