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    j5russell's Avatar
    j5russell Posts: 1, Reputation: 1
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    #1

    Aug 24, 2010, 07:32 AM
    Where would a down payment for A new business go on the financial statements?
    A client wrote a check for a down payment on a new business. Should this be expensed on the income statement, or allocated to the balance sheet.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Aug 24, 2010, 11:56 AM

    This is an investment in a business. The journal Entry will be:
    Debit Cash and Credit Owners Equity for the amount. Both accounts are Balance Sheet Accounts.
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