Which of the Following Journal Entries Most Accurately Records an Owner

question 73

Multiple Choice

Which of the following journal entries most accurately records an owner investing building and land into a business valued at $250,000 and $400,000 respectively?

• A) \(\begin{array} { | c | r | r | }
• \hline \text { Building and land } & 650,000 & \\
• \hline \text { Capital } & & 650,000 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | c | r | r | }
• \hline \text { Building and land } & 650,000 & \\
• \hline \text { Cash } & & 650,000 \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|l|r|r|}
• \hline \text { Building } & 250,000 & \\
• \hline \text { Land } & 400,000 & \\
• \hline \text { Cash } & & 650,000\\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|r|r|}
• \hline \text { Building } & 250,000 & \\
• \hline \text { Land } & 400,000 & \\
• \hline \text { Capital } & & 650,000\\
• \hline
• \end{array}\)

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Definitions:

Rescinded

Describes an action whereby a contract, order, or agreement is revoked, canceled, or repealed.

Antedated

Refers to a document or event dated earlier than the actual date, often done to give the appearance of an earlier occurrence.

Material Fact

A fact that is significant or essential to the issue or matter at hand, which, if known, could influence an individual's decision.

Nondisclosure

An agreement or clause that prohibits the sharing of confidential information.