Samuel Sorenson,the Sole Stockholder,contributed $70,000 in Cash and Land Worth

question 236

Multiple Choice

Samuel Sorenson,the sole stockholder,contributed $70,000 in cash and land worth $130,000 in exchange for common stock to open a new business,SS Consulting.Which of the following general journal entries will SS Consulting make to record this transaction?

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

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Definitions:

Time Horizons

Time horizons refer to the length of time over which an investment or financial instrument is expected to be held or a financial goal to be achieved.

Defined Contribution Pension Plan

A retirement plan where employee benefits are based on the amount of money contributed and the performance of the investment options chosen.

Bears All The Risk

A term referring to the situation where an individual or entity assumes the entire risk associated with an investment or decision.