Question

Matthew Martin, the sole stockholder of Innovation Consulting, started the business by investing $49,000 cash in exchange for common stock. Identify the general journal entry below that Innovation Consulting will make to record the transaction.

Answer 1

Debit Cash $49,000

Credit Common Stock $ 49,000

Step-by-step explanation:

Based on the information given in a situation where Mathew begin the business by investing the amount of $49,000 cash in exchange for common stock which means that the appropriate general journal entry that Innovation Consulting will make to record the transaction will be:

Debit Cash $49,000

Credit Common Stock $49,000