Chris Smith started a consulting business with $12,000 in cash on January 10, 2005. On this date the business had no outstanding liabilities. On the morning of January 12, the firm bought office supplies from Office Mart for $1,000 on credit. The owners equity had a ______?

debit balance of $12,000

credit balance of $12,000

debit balance of $11,000

credit balance of $11,000

I do not know the answer.