Capital Investment

I have invested in a building which I am going to rent out. Is it Dr Building Cr Capital?

The net Income I receive from renting the building I want to build another one to sell. The building expenses on this one should put in Expense Account or Fixed asset?

Thank you for your questions.

Yes, the money you invested into a rental building would be a DEBIT to Building and a CREDIT to Capital. :)

Any rental income that you put towards building expenses that are constructional improvements would be a DEBIT to Fixed Asset.

Great questions, thanks again!

Sale of Capital Stock

How do I record sale of capital stock for cash

If you sold 100 shares of Capital stock for 1,000 cash you would record the transaction as follows:

DEBIT 1,000 Cash
CREDIT 1,000 Capital Stock

What Type of Account is a Capital Account?

My boss is putting money into his company from his personal account. Where do I put that money when I make the deposit?

When you make the deposit of money from his personal account, you should Debit the Bank Account (Asset) and Credit the Owners Contributions Account (Equity).

Tracking Capital Investments

by Terri
(Lexington, KY)

On the quiz the question is "you use an asset account to track capital investments....true or false. The answer shows false. What type of account is used to track capital investments?

Hi Terri,

In this instance, the answer is supposed to be an equity account. An example would be when an owner makes a capital investment of money into the business, the resulting transaction would be to debit the bank account and credit the Owner's Equity - Capital Contributions account. I will make sure to update the answer key to include detail for false answers. Thank you for your question!