Juan invested 7000 into his business He would O A increase C

Juan invested $7,000 into his business. He would: O A. increase Cash only. O B. increase Cash and increase Stockholders\' Equity. O C. increase Liabilities and increase Stockholders\' Equity O D. decrease Cash and increase Stockholders\' Equity.

Solution

Option B

When an asset (here it is cash) is brought into business the journal entry would be cash account debit and Capital account credit.

Therefore Juan\'s investment of $7000 into business increases cash balance and also the Stockholder\'s Equity.