Brokealot deposits $25,000 into a bank account in the name of his corporate veterinary hospital, in exchange for shares of stock in the corporation. What effect would this have on the accounting equation?

Question

Quizplus · Accepted Answer

If Dr. Brokealot deposits $25,000 into a bank account on the name of his veterinary hospital, in exchange for shares of stock in the corporation, it would increase assets on left side of the equation, and increase owner equity on the right side of the equation.

Brokealot Deposits $25,000 into a Bank Account in the Name