95. Richard Redden contributed $70,000 in cash and land worth $130,000 to open a new business, RR Consulting, Inc. Which of the following general journal entries will RR Consulting, Inc. 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. Debi Common Stock, $200,000; credit Cash $70,000, credit Land, $130,000. E. Debit Common Stock, $200,000; credit Assets, $200,000. Answer: C Blooms: Trial AACSB: Analytic AICPA BB: Industry AICPA FN: Measurement Difficulty: 3 Hard Learning Objective: 02-A1 Topic: Analyzing Transactions 96. Consulting purchased $7,000 worth of supplies and paid cash immediately. Which of the following general journal entries will Wiley Consulting make to record this transaction? A. Accounts Payable 7,000 Supplies 7,000 B Cash 7,000 Supplies 7,000 C. Supplies 7,000 Cash 7,000 D. Supplies 7,000 Accounts Payable 7,000 E. Supplies Expense 7,000 Accounts Payable 7,000 Answer: C Blooms: Trial AACSB: Analytic AICPA BB: Industry AICPA FN: Measurement Difficulty: 2 Medium Learning Objective: 02-A1 Learning Objective: 02-P1 Topic: Analyzing Transactions Topic: Journal Entries
95. Richard Redden contributed $70,000 in cash and land worth $130,000 to open a new business, RR Consulting, Inc. Which of the following general journal entries will RR Consulting, Inc. 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. Debi Common Stock, $200,000; credit Cash $70,000, credit Land, $130,000. E. Debit Common Stock, $200,000; credit Assets, $200,000. Answer: C Blooms: AACSB: Analytic AICPA BB: Industry AICPA FN: Measurement Difficulty: 3 Hard Learning Objective: 02-A1 Topic: Analyzing Transactions 96. Consulting purchased $7,000 worth of supplies and paid cash immediately. Which of the following general journal entries will Wiley Consulting make to record this transaction? A. Accounts Payable 7,000 Supplies 7,000 B Cash 7,000 Supplies 7,000 C. Supplies 7,000 Cash 7,000 D. Supplies 7,000 Accounts Payable 7,000 E. Supplies Expense 7,000 Accounts Payable 7,000 Answer: C Blooms: AACSB: Analytic AICPA BB: Industry AICPA FN: Measurement Difficulty: 2 Medium Learning Objective: 02-A1 Learning Objective: 02-P1 Topic: Analyzing Transactions Topic: Journal Entries Trial Trial