Victor Cruz contributed $70,000 in cash and land worth $130,000 to open a new business, VC Consulting, in exchange for common stock. Which of the following general journal entries will VC Consulting make to record this transaction?
A. Debit Cash $70,000; Debit Land $130,000; Credit Common Stock, $200,000.
B. Debit Common Stock, $200,000; Credit Assets, $200,000.
C. Credit Cash and Land, $200,000; Credit Common Stock, $200,000.
D. Debit Accounts Payable $200,000; Credit Common Stock, $200,000.
E. Debit Common Stock, $200,000; Credit Cash $70,000, Credit Land, $130,000.
Answer: A
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