Final answer:
The donation of a desk is recorded in the owner's equity account as an investment and also recorded in the business's assets. It reflects an increase in both the owner's stake in the business and the business's total assets.
Step-by-step explanation:
If you donate a desk to your name's beach barkers, it is recorded in your name's investment account and in Assets. When you make a donation from your own resources to a business or an organization you have a stake in, the transfer represents an investment in that entity. In accounting, this would increase your investment account, which is a part of your equity in the organization, while simultaneously increasing the organization's assets, which now include the desk.
The double-entry accounting system requires that every transaction is recorded in at least two accounts. In this case, one is the investment account (equity increase), and the other is the assets account (physical asset increase). This maintains the fundamental accounting equation:
Assets = Liabilities + Equity
In summary, the donation of an asset like a desk by an owner to their business is recorded as an increase in the owner's equity account for their investment and an increase in the business's assets.