Asked by
Taran sidhu
on Oct 16, 2024Verified
Victor Cruz contributed $70,000 in cash and land worth $130,000 to open a new business,VC Consulting,in exchange for common stock.Which of the following general journal entries will VC Consulting make to record this transaction?
A) Debit Accounts Payable $200,000; Credit Common Stock,$200,000.
B) Credit Cash and Land,$200,000; Credit Common Stock,$200,000.
C) Debit Cash $70,000; Debit Land $130,000; Credit Common Stock,$200,000.
D) Debit Common Stock,$200,000; Credit Cash $70,000,Credit Land,$130,000.
E) Debit Common Stock,$200,000; Credit Assets,$200,000.
Common Stock
A type of equity security that represents ownership in a corporation, with rights to share in its profits and vote in major decisions.
Cash
Liquid currency and resources such as bank deposits that a business has immediate access to for transactions and operations.
- Employ debit and credit rules to accurately detail transactions.
- Master the technique of documenting transactions with the use of the double-entry accounting framework.
- Attain the ability to chronicle financial exchanges involving cash, receivables, payables, and equity.
Verified Answer
BH
Learning Objectives
- Employ debit and credit rules to accurately detail transactions.
- Master the technique of documenting transactions with the use of the double-entry accounting framework.
- Attain the ability to chronicle financial exchanges involving cash, receivables, payables, and equity.