John Tilden contributes cash to his business in exchange for capital.John is the sole proprietor.The two accounts involved in this transaction are ________.

Question

Quizplus · Accepted Answer

In a sole proprietorship, the owner's contribution of cash in exchange for capital is recorded in the Cash account as a debit, and in the owner's capital account as a credit. Therefore, the two accounts involved in this transaction are Cash and Tilden, Capital. Choices A, C, and D are incorrect as they do not involve the correct accounts for this transaction in a sole proprietorship.

John Tilden Contributes Cash to His Business in Exchange for Capital.John