Asked by MATTHEW NESTER on May 01, 2024
Verified
The journal entry debiting Cash and crediting Capital would be a result of a(n) :
A) customer payment.
B) owner withdrawal.
C) investment.
D) revenue.
Capital
Assets with monetary value, including cash and merchandise, that a company utilizes to produce revenue or increase its wealth.
Journal Entry
The act of recording financial transactions in a business's accounting records, marking the fundamental process of maintaining double-entry bookkeeping.
Owner Withdrawal
The amount of money or assets that the owner takes from the business for personal use.
- Learn and devise simple journal entries for multiple business transactions.
- Understand the impact of transactions on owner’s equity and the preparation of the statement of owner's equity.
Verified Answer
OM
Orlando MejiaMay 05, 2024
Final Answer :
C
Explanation :
C) investment. This journal entry reflects an owner or investor putting money into the business, increasing Cash (an asset) and Capital (owner's equity), without generating revenue or involving a customer payment or owner withdrawal.
Learning Objectives
- Learn and devise simple journal entries for multiple business transactions.
- Understand the impact of transactions on owner’s equity and the preparation of the statement of owner's equity.