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

    Mar 13, 2006, 09:38 PM
    Accounting homework
    I need help... If a woman is running a part-time business out of her house and she decides that she wants this to be full time business out of a rented building. Her assets equal out to $30,000, cash 13,100, accounts receivable 3,000, supplies, 1,400, and office equipment is 12,500. So when you are doing the statement of owner's equity would you have the first line as Jane Doe, capital 3/1 of 30,000? Or would the first line Jane Doe, capital 3/1 $0, and the second line state Investment on 3/1 of $30,000. I did the problem with capital of $30,000, and my study group states that I am doing the problem wrong. So can someone please help...
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Mar 14, 2006, 11:47 AM
    Jane Doe, Capital 30,000

    Why?
    Because she has been running this business for a while. Now, she wishes to move it from her house to another rented place.

    The fact is, you don't get 3,000 in AR without having operated, therefore, it would be Capital.
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