journal entry

vkcadenhead · #1 Sep 30, 2007, 10:50 AM

One more question:

If someone contributes, say $70,000 dollars in cash and land worth $130,000 to open a new business how would that look as a journal entry? Would the land and cash transactions need to be seperate?

ex.: Debit to Capital 200,000
Credit to Assets 200,000

OR
Credit to Cash 70,000
Credit to LAnd 130,000
Debit to Capital 200,000

Any input is appreciated, thanks!

rubygarcia · Sep 30, 2007, 04:52 PM

Quote:

Originally Posted by vkcadenhead

One more question:

If someone contributes, say $70,000 dollars in cash and land worth $130,000 to open a new business how would that look as a journal entry? Would the land and cash transactions need to be seperate?

ex.: Debit to Capital 200,000
Credit to Assets 200,000

OR
Credit to Cash 70,000
Credit to LAnd 130,000
Debit to Capital 200,000

Any input is appreciated, thanks!

Debit Cash (current assets) $70,000
Debit Land (non-current assets) $130,000
Credit Capital $200,000

vkcadenhead · Oct 1, 2007, 08:28 AM

thanks



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