Stockholders invested $20,000 cash in a business for common stock. The journal entry to record this transaction would include

A. A debit to Cash and a credit to Retained Earnings
B. A debit to Cash and a credit to Investment Income
C. A debit to Service Revenue and a credit to Cash
D. A debit to Cash and a credit to Common Stock

Ans: D. A debit to Cash and a credit to Common Stock

Business

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