Question

Richard Redden contributed $71,000 in cash and land worth$132,000 to open a new business, RR Consulting, Inc. Which of thefollowing general journal entries will RR Consulting, Inc. make torecord this transaction?

Debit Assets $203,000; credit Common Stock $203,000.

Debit Cash and Land, $203,000; credit Common Stock $203,000.

Debit cash $71,000; debit land $132,000; credit Common Stock$203,000.

Debit Common Stock $203,000; credit cash $71,000; credit Land$132,000.

Debit Common Stock $203,000; credit Assets $203,000.