Samuel Gardiner opens Gardiner Real Estate Agency with an investment of $14,000 cash and $3,000 of office equipment.
ANSWER:
Cash---------------14,000
office equipment----3,000
Owners Capital--------------17,000
is dis right?
Yes, your calculation and breakdown of the investment are correct.
When opening Gardiner Real Estate Agency, Samuel Gardiner invested $14,000 in cash and $3,000 worth of office equipment. To record this transaction, you have correctly identified two categories: Cash and Office Equipment. The amounts in these categories are:
Cash: $14,000
Office Equipment: $3,000
To determine the total investment, you sum up these amounts:
$14,000 + $3,000 = $17,000
Therefore, the total investment made by Samuel Gardiner is $17,000, which is correctly labeled as "Owners Capital," reflecting the owner's initial capital contribution to the business.