Answered step by step
Verified Expert Solution
Question
1 Approved Answer
the owner of the company invested $25,000 in cash, a building that has a market value of $ 1,500,000, some supplies for $ 2,500 and
the owner of the company invested $25,000 in cash, a building that has a market value of $ 1,500,000, some supplies for $ 2,500 and a land valued at $ 500,000. The journal entry should be:
a. Cash 25,000
Building 1,500,000
Land 500,000
Supplies 2,500
Owner's Capital 2,027,500
b. Cash 25,000
Building 500,000
Land 1,500,000
Supplies 2,500
Owner's Capital 2,027,500
c. Cash 2,500
Building 500,000
Land 1,500,000
Supplies 25,000
Owner's Equity 2,027,500
d. Cash 25,000
Building 1,500,000
Land 500,000
Supplies 2,500
Owner's Equity 2,027,500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started