Invested $25000 in cash and office equipment that had a fair value of $6000. What is the journal entry for this?
To record the investment of $25,000 in cash and office equipment with a fair value of $6,000, you would need to create a journal entry. The entry will reflect an increase in assets (cash and office equipment) and a corresponding increase in owner's equity.
Here's how you can record the journal entry:
1. Debit Office Equipment for the fair value of $6,000.
2. Debit Cash for the remaining amount, which is $25,000 - $6,000 = $19,000.
3. Credit Owner's Equity (or Capital Account) for the total investment amount of $25,000.
The journal entry would look like this:
Date | Account | Debit ($) | Credit ($)
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| Office Equipment | 6,000 |
| Cash | 19,000 |
| Owner's Equity | | 25,000
Please note that the specific account names or how the transaction is recorded may vary depending on the accounting system or standards used by your company. It is always advisable to consult with an accountant or use the appropriate chart of accounts specific to your organization.