Question

Eduardo Martinez, the sole stockholder of Eduardo’s Dance Studio, started the business by investing $10,000 cash and donating a building worth $20,000 in exchange for common stock. Identify the general journal entry below that Eduardo’s will make to record the transaction.

Answer 1

	Solution,
	Cash Invested	$                    10,000
	Building Value	$                    20,000
	Total	$                    30,000
	Common Stock of $ 30,000 will issue against these $ 30,000 investment in business
	Journal entry of the same is passes as below,
	Eduardo’s Dance Studio
	Account Title and explanation	Debit	Credit
	Cash	$10,000
	Building	$20,000
	Common Stock		$30,000