posted by Matt .
If the owner of a company invests personal funds into his company, where does that fit into the balance sheet.
I know the cash will increase, but I don't know how it put it in the equity section. For example, If Greg Jones invests $2000 into his company, would to equity section of Balance Sheet, in report form for the month of April, look like this?
G. Jones, Capital at March 31 = $70000
Net Income (loss)= $60000
G. Jones Drawings= -$5000
G. Jones Investment= $2000
G. Jones Equity at April 31= $127000