Final answer:
The question concerns the basic accounting task of recording Nozomi's investment into a company through a T-account, where a cash investment of $30,000 and computer equipment with a value of $20,000 are debits, and the issuance of common stock for $50,000 is a credit.
Step-by-step explanation:
The question posed by the student involves recording the initial investment transactions of a business owner, Nozomi, who invested both cash and computer equipment in exchange for common stock. This is a fundamental concept in accounting related to business transactions, specifically how to document initial capital contributions on a T-account.
To answer the question, on April 1st, Nozomi made two investments into the company: a cash investment of $30,000 and computer equipment valued at $20,000. These would both be recorded on the left side (debit side) of the T-account because they are assets the company has received. Conversely, the right side (credit side) of the T-account would reflect an issuance of common stock equal to the total value of the contributions, which is $50,000. It can be depicted in the T-account as follows:
Journal Entry:
Assets (Debit)
Cash: $30,000
Computer Equipment: $20,000
Equity (Credit)
Common Stock: $50,000
This entry reflects the accounting equation Assets = Liabilities + Equity, maintaining balance as the company's assets have increased due to Nozomi's investment, balanced by an equal increase in equity.