Richard Redden Contributed $70,000 in Cash and Land Worth $130,000

question 153

Multiple Choice

Richard Redden contributed $70,000 in cash and land worth $130,000 to open a new business,RR Consulting.Which of the following general journal entries will RR Consulting make to record this transaction?

• A)Debit Assets $200,000;credit Redden,Capital,$200,000.
• B)Debit Cash and Land,$200,000;credit Redden,Capital,$200,000.
• C)Debit Cash $70,000;debit Land $130,000;credit Redden,Capital,$200,000.
• D)Debit Redden,Capital,$200,000;credit Cash $70,000,credit Land,$130,000.
• E)Debit Redden,Capital,$200,000;credit Assets,$200,000.

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Definitions:

Insignificant Benefits

Benefits or advantages that are too small or unimportant to make a noticeable difference.

Opportunity Costs

The advantages or gains a person, investor, or company forgoes by selecting one option instead of another.

Economic Resources

Resources required for the production of goods and services, including labor, capital, land, and entrepreneurship.

Production Possibilities

The various combinations of goods and services that can be produced in a given timeframe, using all available resources and technology.