The owner invested personal equipment in the business. To record this transaction,
A) debit Equipment and credit Accounts Payable.
B) debit Accounts Payable and credit Equipment.
C) debit Equipment and credit Capital.
D) credit Equipment and debit Capital.

Question

Quizplus · Accepted Answer

When the owner invests personal equipment in the business, it increases the value of the Equipment owned by the business and the owner's Capital in the business. Hence, we should debit Equipment and credit Capital to record this transaction.

The Owner Invested Personal Equipment in the Business