Mr.Bryan invested $50,000 cash in a new corporation.The new corporation will record this transaction with a debit to ________.

Question

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When a person invests cash into a corporation, it is recorded as a debit to Cash and a credit to Paid-in Capital. This represents an increase in the assets of the company and an increase in the owner's equity. Retained Earnings are not affected because the company has not yet earned any income.

MrBryan Invested $50,000 Cash in a New Corporation