On December 1,20XX,Riley Sanders invested $250,000 to open Sanders Enterprises.What is the General Journal entry to record this transaction?

Question

Quizplus · Accepted Answer

When Riley Sanders invests $250,000 to open his business, it results in an increase in both his personal equity in the business and the cash balance of the company. Therefore, the accounting entry must reflect a debit to Cash for $250,000 and a credit to R. Sanders Capital for $250,000 to record this transaction. Option D is the correct journal entry that follows this principle.

On December 1,20XX,Riley Sanders Invested $250,000 to Open Sanders Enterprises