Asked by Shanda Harrison on Jul 26, 2024
Verified
The owner invested a personal truck in the business. To record this transaction:
A) debit Equipment and credit Revenue.
B) debit Accounts Payable and credit Equipment.
C) debit Equipment and credit Capital.
D) credit Equipment and debit Capital.
Personal Truck
A privately-owned motor vehicle, used for personal transportation rather than for business or commercial purposes.
Equipment
Equipment encompasses the tools, machinery, devices, or any physical items required for the performance of specific tasks or functions in various fields.
Revenue
The consolidated income from the sale of goods or services that constitute the backbone of a company's operational efforts.
- Document the proprietor's investments into and withdrawals from the enterprise.
Verified Answer
GS
Grace StephensonJul 28, 2024
Final Answer :
C
Explanation :
When an owner invests a personal asset (like a truck) into the business, it increases the assets of the business (Equipment) and also increases the owner's equity (Capital). Therefore, you debit Equipment to increase assets and credit Capital to reflect the increase in owner's equity.
Learning Objectives
- Document the proprietor's investments into and withdrawals from the enterprise.