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 journal entry to record this transaction would be to debit Cash for $70,000 and Land for $130,000, and credit Robert Haddon, Capital for $200,000. This would increase the assets of the business by $200,000, with $70,000 in cash and $130,000 in land, and increase the owner's equity by the same amount. Choice C is the only option that correctly reflects this transaction.

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