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?
A) $\begin{array}{|l|c|c|}
\hline \text { Assets } & 200,000 & \
\hline \text { Common Stock } & & 200,000 \
\hline
\end{array}$
B) $\begin{array}{|c|c|c|}
\hline \text { Cash and Land } & 200,000 & \
\hline \text { Common Stock } & & 200,000 \
\hline
\end{array}$
C) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 70,000 & \
\hline \text { Land } & 130,000 & \
\hline \text { Common Stack } & & 200,000 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | }
\hline \text { Common Stack } & 200,000 & \
\hline \text { Cash } & & 70,000 \
\hline \text { Land } & & 130,000 \
\hline
\end{array}$$
E) $$\begin{array} { | c | r | r | }
\hline \text { Common Stock } & 200,000 & \
\hline \text { Assets } & & 200,000 \
\hline
\end{array}$$

Question

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?
A) $\begin{array}{|l|c|c|}
\hline \text { Assets } & 200,000 & \
\hline \text { Common Stock } & & 200,000 \
\hline
\end{array}$ 
B) $\begin{array}{|c|c|c|}
\hline \text { Cash and Land } & 200,000 & \
\hline \text { Common Stock } & & 200,000 \
\hline
\end{array}$ 
C) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 70,000 & \
\hline \text { Land } & 130,000 & \
\hline \text { Common Stack } & & 200,000 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | } 
\hline \text { Common Stack } & 200,000 & \
\hline \text { Cash } & & 70,000 \
\hline \text { Land } & & 130,000 \
\hline
\end{array}$$
E) $$\begin{array} { | c | r | r | } 
\hline \text { Common Stock } & 200,000 & \
\hline \text { Assets } & & 200,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The correct entry is to debit Cash for $70,000, debit Land for $130,000, and credit Common Stock for $200,000. This entry records the receipt of the cash and land from Robert Haddon and the issuance of common stock to him.

Robert Haddon Contributed $70,000 in Cash and Some Land Worth Assets 200,000 Common Stock 200,000\begin{array}{|l|c|c|}\hline \text { Assets } & 200,000 & \\\hline \text { Common Stock } & & 200,000 \\\hline\end{array} Assets Common Stock ​200,000​200,000​​

Robert Haddon Contributed $70,000 in Cash and Some Land Worth $\begin{array}{|l|c|c|}\hline \text { Assets } & 200,000 & \\\hline \text { Common Stock } & & 200,000 \\\hline\end{array}$