Richard Redden, the sole stockholder, contributed $70,000 in cash and land worth $130,000 in exchange for common stock to open a new business, RR Consulting. Which of the following general journal entries will RR Consulting make to record this transaction?

Multiple Choice

• Debit Cash $70,000; debit Land $130,000; credit Common Stock, $200,000.

• Debit Common Stock, $200,000; credit Assets, $200,000.

• Debit Cash and Land, $200,000; credit Common Stock, $200,000.

• Debit Common Stock, $200,000; credit Cash $70,000, credit Land, $130,000.

• Debit Assets $200,000; credit Common Stock, $200,000.