The Owner Invested Personal Equipment in the Business

question 152

Multiple Choice

The owner invested personal equipment in the business. To record this transaction,

• A) debit Equipment and credit Accounts Payable.
• B) debit Accounts Payable and credit Equipment.
• C) debit Equipment and credit Capital.
• D) credit Equipment and debit Capital.

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Definitions:

Computer Technician

A professional who diagnoses, repairs, and maintains computers and servers.

Software Updates

Amendments, improvements, or enhancements to software, including bug fixes, security patches, and new features to ensure optimal performance and security.

Unearned Subscriptions

Revenue received in advance for subscriptions that have not yet been fulfilled.

Adjusting Entries

Journal entries made in an accounting period to update the records for accruals and deferrals that have not been fully recorded during the period.