During the month of January, Katelyn invested $10,000 in starting her legal practice. The proper journal entry would be
A) Cash, debit $10,000; Katelyn's Capital, credit $10,000.
B) Katelyn's Capital, debit $10,000; Cash, credit $10,000.
C) Cash, debit $10,000; Revenue, credit $10,000.
D) Katelyn's Withdrawals, debit $10,000; Cash, credit $10,000.

Question

Quizplus · Accepted Answer

When Katelyn invests $10,000 in her legal practice, it increases the business's cash (an asset), which is debited, and increases her capital (owner's equity), which is credited.

During the Month of January, Katelyn Invested $10,000 in Starting