Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business,RH Consulting.Which of the following general journal entries will RH Consulting make to record this transaction?

Question

Quizplus · Accepted Answer

The entry should debit Cash for $70,000 and debit Land for $130,000. It should also credit Common Stock for the total amount contributed, which is $200,000. The correct entry is:

Debit Cash $70,000
Debit Land $130,000
Credit Common Stock $200,000

Robert Haddon Contributed $70,000 in Cash and Some Land Worth