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Mr Chamberlain Invested $40,000 Cash in a New Corporation

Question 19

Multiple Choice

Mr. Chamberlain invested $40,000 cash in a new corporation. The new corporation will record this transaction with a:


A) debit to Paid- in Capital and a credit to Retained Earnings for $40,000
B) debit to Cash and a credit to Retained Income for $40,000
C) debit to Retained Earnings and a credit to Cash for $40,000
D) debit to Cash and a credit to Paid- in Capital for $40,000

Correct Answer:

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