John contributed $6,000 cash to a sole proprietorship by opening a bank account in the name of the business,United Marketing.John received capital in the business in exchange.This transaction results in an increase in the assets of the business.

Question

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Opening a bank account and depositing cash results in an increase in the assets of the business. John's contribution of $6,000 also results in an increase in the owner's equity or capital in the business.

John Contributed $6,000 Cash to a Sole Proprietorship by Opening