Question
Willa opened a new business by investing the following assets: cash, $16,000; land, $23,000; building, $100,000. Also, the business will assume responsibility for a note
Willa opened a new business by investing the following assets: cash, $16,000; land, $23,000; building, $100,000. Also, the business will assume responsibility for a note payable of $22,000. Willa signed the note as part of his payment for the land and building. Which journal entry should be used on the books of the new business to record the investment by Willa?
Select one:
A.
| Assets | 139,000 | ||
| Liability | 22,000 | ||
| Eli, Capital | 117,000 |
B.
| Cash | 16,000 | ||
| Land | 23,000 | ||
| Building | 100,000 | ||
| Eli, Capital | 139,000 |
C.
| Cash | 3,000 | ||
| Assets | 136,000 | ||
| Eli, Capital | 139,000 |
D.
| Assets | 139,000 | ||
| Eli, Capital | 139,000 |
E.
| Cash | 16,000 | ||
| Land | 23,000 | ||
| Building | 100,000 | ||
| Note Payable | 22,000 | ||
| Eli, Capital | 117,000 |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
