Answer:
Explanation:
The transaction would be recorded as a cash investment. The journal entry would be:
Debit: Cash
Credit: Investment
Amount: $10,000
The debit side of the entry represents the money that is coming into the business, and the credit side represents the money that is leaving the business. In this case, the money is coming into the business from Kim's investment, so the debit side is Cash. The investment is a long-term asset, so the credit side is Investment.
The amount of the entry is $10,000, which is the amount of money that Kim is investing in the business.
This entry would be recorded in the general ledger of the business. The general ledger is a record of all of the transactions that have occurred in the business. The journal entry would be posted to the cash account and the investment account in the general ledger.
I hope this helps! Let me know if you have any other questions.