If the owner invests additional capital in the business during the month, how would that new investment be shown in the financial statements?

When the owner invests additional capital in the business during the month, it affects the financial statements in the following way:

1. Balance Sheet: The investment increases the owner's equity, specifically the owner's capital account. On the balance sheet, the owner's capital account will show a higher value, reflecting the new investment.

2. Income Statement: The additional capital investment does not directly impact the income statement because it is not considered an expense or revenue. However, it can indirectly affect the income statement by providing the business with additional funds to invest and generate income.

To show the new investment in the financial statements, the following steps can be taken:

1. Record the transaction: Create a journal entry to record the additional capital investment. Debit the cash or bank account to reflect the increase in funds and credit the owner's capital account to represent the increase in the owner's equity.

2. Update the balance sheet: Add the amount of the investment to the owner's capital account under the equity section of the balance sheet. This will increase the total owner's equity and reflect the new investment.

It is essential to consult with an accountant or a financial professional to ensure the accurate recording of the investment and its impact on the financial statements.