The journal entry debiting Cash and crediting Capital would be a result of a(n):

Question

Quizplus · Accepted Answer

The journal entry debiting Cash and crediting Capital is likely a result of an investment, as it represents the owner putting money into the business. A customer payment would result in a debit to Accounts Receivable (or Cash if received in full) and a credit to Revenue. An expense would result in a debit to an expense account and a credit to Cash (or Accounts Payable if paid on credit). A revenue would result in a debit to Cash (or Accounts Receivable if on credit) and a credit to Revenue.

The Journal Entry Debiting Cash and Crediting Capital Would Be