Matthew Martin, the Sole Stockholder of Innovation Consulting, Started the Business

Matthew Martin, the sole stockholder of Innovation Consulting, started the business by investing $40,000 cash in exchange for common stock. Identify the general journal entry below that Innovation Consulting will make to record the transaction.

A) $\begin{array}{|l|r|l|}\hline \text { Cash } & 40,000 & \\\hline \text { Common Stock } & & 40,000 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|}\hline \text { Common Stock } & 40,000 & \\\hline \text { Cash } & & 40,000 \\\hline\end{array}$
C) $\begin{array}{|l|r|l|}\hline \text { Accounts Receivable } & 40,000 & \\\hline \text { Cash } & & 40,000 \\\hline\end{array}$
D) $\begin{array}{|l|r|l|}\hline \text { Investments } & 40,000 & \\\hline \text { Common Stock } & & 40,000 \\\hline\end{array}$
E) $\begin{array}{|l|r|l|}\hline \text { Cash } & 40,000 & \\\hline \text { Note Payable } & & 40,000 \\\hline\end{array}$