Matthew Martin, the sole stockholder of Innovation Consulting, started the business by investing $40,000 cash in exchange for common stock. Identify the general journal entry below that Innovation Consulting will make to record the transaction.

a. Cash 40,000
Common Stock 40,000

b. Common Stock 40,000
Cash 40,000

c. Accounts Receivable 40,000
Cash 40,000

d. Investments 40,000
Common Stock 40,000

e. Cash 40,000
Note Payable 40,000

a. Cash $40,000

Common Stock $40,000

Explanation:

When the owners of a business or sole stockholder provides cash to run the activities of the business in exchange for common stock, such cash is recognized as equity.

To the business, an assets has been added in form of cash, but then, this asset results in an obligation not to a 3rd party but to the owner of the business.

Hence assets and equity are said to have increased as a result of this transaction.

The required entries are debit cash and credit common stock.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; swot analysis;