A stockholder's investment of land and a building into the business would include a debit to:
A)Land and Building and a credit to Common Stock.
B)Land and a credit to Building.
C)Common Stock and a credit to Building.
D)Building and a credit to Retained Earnings.

Question

Quizplus · Accepted Answer

When a shareholder invests land and a building into the business, it is considered a contribution to the company's assets, and the shareholder will be issued common stock in exchange. Therefore, the transaction will involve a debit to Land and Building (as the assets increase) and a credit to Common Stock (as the shareholder's equity in the company increases).

A Stockholder's Investment of Land and a Building into the Business