James opens his business by investing $12,000.How does this affect the accounting equation?

Question

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When James invests $12,000 in his business, it increases the assets of the business by $12,000, which is recorded as cash. At the same time, James becomes the owner of the business and his ownership interest increases by $12,000, which is recorded as an increase in stockholders' equity. Therefore, the accounting equation is in balance, with an increase in assets on one side and an increase in stockholders' equity on the other side.

James Opens His Business by Investing $12,000