Desiree clark is licensed cpa during the first month of operation of her bussiness the following event &transcations accured May1:clark invested $20,000cash in her bussiness
Idont know
I don't either. You haven't posted a question.
To answer the question, we need to determine the effect of the given event on Desiree Clark's business.
The event states that on May 1, Desiree Clark invested $20,000 cash in her business. This implies that Desiree brought in $20,000 of her own money into the business.
In accounting terminology, this transaction can be recorded as follows:
1. Increase in the assets of the business:
- Cash account would be debited (increased) by $20,000.
2. Increase in the owner's equity:
- Capital account (representing Desiree's investment in the business) would be credited (increased) by $20,000.
The double-entry bookkeeping process ensures that both sides of the equation are equal. Therefore, the accounting equation in this case would be:
Assets = Liabilities + Owner's Equity
The transaction on May 1 would increase the assets (cash) by $20,000 and also increase the owner's equity by $20,000.
Note: It is essential to consider other events and transactions that occur during the first month of operation to determine the complete effect on Desiree Clark's business.