Victor Cruz contributed $77,000 in cash and land worth $144,000 to open a new business, VC Consulting, in exchange for common stock. Which of the following general journal entries will VC Consulting make to record this transaction? A. debit cash 77,000; debit land 144,000; common stock 221,000B. debit common stock 122,000; credit assets 221,000C debit common stock 221,000; credit cash 77,000; credit land 144,000D credit cash and land 221,000; common stock 221,000E debit accounts payable 221,000 common stock 221,000

Question

Business

Dominique Hayes

1 May, 07:25

Victor Cruz contributed $77,000 in cash and land worth $144,000 to open a new business, VC Consulting, in exchange for common stock. Which of the following general journal entries will VC Consulting make to record this transaction? A. debit cash 77,000; debit land 144,000; common stock 221,000B. debit common stock 122,000; credit assets 221,000C debit common stock 221,000; credit cash 77,000; credit land 144,000D credit cash and land 221,000; common stock 221,000E debit accounts payable 221,000 common stock 221,000

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Answers (1)

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Marcelo Novak · Answer 1

Option A is correct

Explanation:

The following entry will be passed by VC Consulting in the books of accounts:

Particulars Debit Credit

Cash 77000

Land 144000

To common stock 221000

Cash account and Land account will be debited in the books of account with an amount of $77000 and $144000 and common stock will be credited with an amount of $221000

Therefore, the option with this will be the correct option.

From the given option, A is the correct one.