To record the owner transferring a personal barcode scanner into the business, the appropriate accounting entry is to debit Equipment and credit Capital. (option D)
To document the owner's transfer of a personal barcode scanner into the business, the accurate accounting entry is to debit Equipment and credit Capital. This transaction recognizes an increase in the business's assets (Equipment) due to the newly acquired scanner, while also crediting the Capital account, reflecting the owner's equity in the business.
This entry adheres to accounting principles, acknowledging the contribution of personal assets to the business. It ensures a transparent representation of the company's financial position and the owner's investment. The correct accounting treatment aids in maintaining accurate financial records and a comprehensive overview of the business's assets and equity. (Option D)
The complete question is:
The owner transferred his personal barcode scanner into the business. To record this transaction
A. debit Accounts Payable and credit Equipment
B. debit Equipment and credit Accounts Payable
C. credit Equipment and debit Capital
D. debit Equipment and credit Capital