Question

Mary Martin, the owner of Martin Consulting, started the business by investing $47,000 cash. Identify the general journal entry below that Martin Consulting will make to record the transaction.

a.
Cash 48,000
Increased Equity 48,000

b.
Investments 48,000
Cash 48,000

c.
Cash 48,000
Common stock 48,000

d.
Common stock 48,000
Cash 48,000

e.
Investments 48,000
Common stock 48,000

Answer 1

c. Cash 48,000

Common stock 48,000

Step-by-step explanation:

Since it is given in the question , that the owner of Martin Consulting, started the business by investing $48,000 cash. The $48,000 amount is right and according to that the options are also given

Since the amount is invested, so the journal entry is

Cash Dr 48,000

To Common stock $48,000

(Being the invested amount is recorded)

Since the cash balance is increased so cash is debited and equity is also increased so we credited the common stock