Mr. decker invested $20,000 in cash in his new business. How does the company record the investment? | Homework.Study.com (2024)

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Business Accounting Double-entry bookkeeping system

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Mr. decker invested $20,000 in cash in his new business. How does the company record the investment?

Journal Entries

Journal Entries are tools used in accounting for recording business transactions and events. These are then compiled together in a standard format to determine their effect on financial statement account balances.

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The company should record the investment by a debit in the Cash account and a credit to the Capital account for the amount of $20,000. The journal...

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Journal Entries & Trial Balance | Differences & Examples

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Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.

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Mr. decker invested $20,000 in cash in his new business. How does the company record the investment? | Homework.Study.com (2024)
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