On January 1, 2019, Flip-Flop Inc. purchased a trademark from Cool Shoe Inc. for $200,000. They paid for the purchase with $100,000 in cash and $100,000 in Flip-Flop common stock. How would the transaction be recorded by Flip-Flop?

• debit cash $100,000; debit common stock $100,000; credit trademark $200,000
• debit trademark $200,000; credit cash $100,000; credit common stock $100,000
• debit trademark expense $200,000; credit cash $100,000; common stock $100,000
• debit trademark $200,000; credit cash $100,000; credit retained earnings $100,000

Answer rating: 100% (QA)

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