Bridget Cartier has privately invested $100,000 in Jacques and Jacqueline's Idaho Ski Resort.The business will use the money to purchase new ski lift chairs.$100,000 will be recorded on the balance sheet as part of the owners' equity account.In order to keep the accounts balanced,the balance sheet will also show:
A)An increase of $100,000 cash.
B)A fixed asset [ski lift chairs] = $100,000.
C)A liability for $100,000.
D)An increase in accounts receivable for $100,000 in her QuickBooks.

Question

Quizplus · Accepted Answer

Since the $100,000 is being used to purchase a fixed asset (the ski lift chairs), it should be recorded as such on the balance sheet. There is no increase in cash or liability, and accounts receivable does not apply in this situation.

Bridget Cartier Has Privately Invested $100,000 in Jacques and Jacqueline's