Final answer:
The correct entry for recording an owner's investment of $500 into a business is to debit Cash for $500 and credit Common Shares for $500, reflecting an increase in both the assets and equity of the business.
Step-by-step explanation:
The entry to record an owner investment of $500 into the business would be: d) Cash 500 Common Shares 500. When an owner invests cash in the business, the cash account increases because the business now has more money. This increase is recorded on the debit side of the cash account. To balance this, an equal credit entry must be made, reflecting the owner's increased equity in the company. This is usually recorded in a common shares or owner's equity account, depending on the business structure.