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

question 78

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

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Definitions:

Freezing Temperatures

A temperature at or below the freezing point of water, 0°C (32°F), where liquid water turns into ice.

Prevailing Wind

The wind direction most often observed at a particular location over a certain period of time.

Sand Dunes

Naturally occurring hills or ridges of sand piled up by the wind or sometimes by water flow, found in deserts and coastal areas.

Rain Forests

Tropical forests characterized by high rainfall, dense canopy, and significant biodiversity.