Mary Martin, the Sole Stockholder of Martin Consulting, Started the Business

question 183

Multiple Choice

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

• A) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 40,000 & \\
• \hline \text { Corrmon Stock } & & 40,000 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | l | r | r | }
• \hline \text { Corrunon Stock } & 40,000 & \\
• \hline \text { Cash } & & 40,000 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | l | r | r | }
• \hline \text { Irvestrnents } & 40,000 & \\
• \hline \text { Cash } & & 40,000 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | l | r | r | }
• \hline \text { Irvestrnents } & 40,000 & \\
• \hline \text { Corrmon Stock } & & 40,000 \\
• \hline
• \end{array}\)
• E) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 40,000 \\
• \hline \text { Ircreased Equity } & & 40,000 \\
• \hline
• \end{array}\)

---

Definitions:

Continental Crust

The layer of igneous, sedimentary, and metamorphic rocks that forms the continents and the areas of shallow seabed close to their shores, known as continental shelves.

Rifting

The process of continental crust being pulled apart, leading to the formation of new oceanic crust and the expansion of ocean basins.

Salt Domes

Geological formations created when a thick bed of evaporite minerals (primarily salt) is pushed upward by the pressure of overlying rock layers.

Less Dense

Describes materials that have a lower mass per unit volume compared to others, often leading to buoyancy in fluids.