An owner investment of land valued at $20,000 and a building valued at $55,000 into the business would include a:
A)debit to the land account for $55,000 and building account for $20,000.
B)debit to the land account for $75,000.
C)debit to the land account for $20,000 and building account for $55,000.
D)debit to the building account for $75,000.

Question

Quizplus · Accepted Answer

The correct entry for recording the owner's investment of land and building into the business is to debit the land account for the value of the land ($20,000) and the building account for the value of the building ($55,000), reflecting the accurate values of the assets contributed.

An Owner Investment of Land Valued at $20,000 and a Building