Mary Martin, the Owner of Martin Consulting, Inc $\begin{array} { | c | r | r | } \hline \text { Cash } & 40,000 & \\\hline \text { Common Stock } & & 40,000 \\\hline\end{array}$

question 62

Multiple Choice

Mary Martin, the owner of Martin Consulting, Inc., started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting, Inc. will make to record the transaction.

• A) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 40,000 & \\
• \hline \text { Common Stock } & & 40,000 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | c | r | r | }
• \hline \text { Commen Stock } & 40,000 & \\
• \hline \text { Cash } & & 40,000 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Investments } & 40,000 & \\
• \hline \text { Cash } & & 40,000 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | c | r | r | }
• \hline \text { Investments } & 40,000 & \\
• \hline \text { Commrnon Stock } & & 40,000 \\
• \hline
• \end{array}\)
• E) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 40,000 & \\
• \hline \text { Increased Equity } & & 40,000 \\
• \hline
• \end{array}\)

---

Definitions:

Cashier's Check

A cashier's check, which is underwritten and signed by the bank itself, utilizing its own finances.

Certified Check

Any check that is accepted by the bank from which the funds are drawn.

Teller's Check

A check drawn by a bank on its own funds and signed by a teller, often used in situations requiring guaranteed funds.

Depository Bank

A financial institution that holds and manages securities and assets on behalf of investors, such as stocks and bonds.