During the month of June, Jane invested $19,000 in starting her legal practice. The proper journal entry would be:
A) Cash, debit $19,000; Jane, Capital, credit $19,000
B) Accounts Payable, debit $19,000; Cash, credit $19,000
C) Cash, debit $19,000; Revenue, credit $19,000
D) Jane's Capital, debit $19,000; Cash, credit $19,000

Question

Quizplus · Accepted Answer

When Jane invests $19,000 in her legal practice, it increases her business's cash (an asset), which is debited, and simultaneously increases her capital account (owner's equity), which is credited. This reflects the inflow of capital into the business.

During the Month of June, Jane Invested $19,000 in Starting