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 separate?

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!

Quote:

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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!

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

Thanks