An owner invests $92,000 cash along with office equipment valued at $34,000. How would I reflect this in a t-chart? I understand it would be a debit to cash and a credit to capital but what about the office equipment? They count as assets so it would be a debit to Equipment BUT I need an inverse log of that. I was thinking debit to cash but the owner invested, didn't purchase from the company. Any help would be much appreciated!

Question

amistre64 · Answer

If I recall correctly, this is how you would account for it


         (A)Cash                 (E)Owner Equity/Capital
-----------------     ----------------------
$ 92,000 |                                      | $ 92,000
                                                      | $ 34,000


(A)Office Equipment
-----------------    
$ 34,000 |

anonymous · Answer

Thank you very much, you're right, I found out that since the owner invested the equipment, it would be logged as capital