Question

Elaine Matuszek, the sole stockholder of Matuszek Consulting, started the business by investing $49,000 cash. Identify the general journal entry below that Matuszek Consulting will make to record the transaction.


A. Investments 49,000

Common Stock 49,000


B. Cash 49,000

Common Stock 49,000

C. Cash 49,000

Increased Equity 49,000

D. Investments 49,000

Cash 49,000

E. Common Stock 49,000

Cash 49,000

Answer 1

Answer:

Option B.

Dr Cash              $490,00

Cr  Common Stock $49,000

Explanation:

The journal entry to record the investment in the equity of the company with no par value will always increase the Common Stock with all the amount  invested in the company:

Dr Cash              $490,00

Cr  Common Stock $49,000